What are the Required Documents for Home Loan Applications

Buying a property and applying for home loans could leave you feeling anxious. There are so many unknowns - what documents do I need, how long does it take to get approval, and should I buy a house by myself or with a partner? Not knowing could make you feel discouraged, and that’s why knowledge is power, especially if you are a first-time home buyer.

You can find the answers to most of your questions elsewhere on our blog, but let’s first discuss in more detail the paperwork you will need for your home loan application. It is important to note that each bank will have slightly different requirements, which is why it can be useful to work through a Bond Originator who can apply at all the banks on your behalf and come back to you with the best offer.

Home loan documents required as an employed individual

In general, whether you are employed in the public or private sector, you will need the following documentation for your application. If you are applying with your partner, they will need to provide the same documentation as well:

• Proof of income: This will be your latest payslip, however, if you earn commission or overtime, you generally will need to provide the last 3 months' payslips.
• Bank statements: Most banks require your latest 3 months’ personal bank statements.
• Identification document: A copy of your ID. If you are using a smart card, include a copy of the front and back.
• Marriage Certificate: If you are married, you will need to provide a copy of your marriage certificate, as well as a copy of your ANC agreement if you have one. You will need to provide this whether you are applying by yourself or with your spouse.
• Copy of purchase agreement: You will need to provide a signed copy of the purchase agreement or offer to purchase to the financial institution.
• Proof of residence: This could be your latest rates/levy statement or utility bill.

Home loan documents required as a self-employed individual

The bond application process looks a little different for the self-employed individual, but it doesn’t have to be a cumbersome process. By having the correct documentation ready, you’re already taking a step in the right direction. Carl Coetzee, CEO of BetterBond, says the following documents will help streamline an entrepreneur’s bond application process:

• Application form: A completed and signed application form.
• OTP: Your signed offer to purchase.
• Identification document: A copy of your ID. If you are using a smart card, include a copy of the front and back.
• Financials: You’ll need the three years set of signed financials. If these are older than six months, you'll need up-to-date signed management accounts.
• An auditor's letter: This needs to state your income, and the expenses paid for by the business.
• A personal statement of assets and liabilities: This will need to be signed and dated, as well as a signed and dated statement of personal income versus expenses.
• Bank Statements: Personal bank statements for the last three months and your latest six months' business bank statements.
• Your latest IT34 from SARS: This is not mandatory on submission but may be requested by the bank, so it’s a good idea to have it ready.

Home loan documents required as a CC/PTY or Trust

Buying a property as a Company or a Trust comes with its own set of unique pros and cons. But, if this is the way you want to go, then these are the documents you generally will need in order to apply for a loan:

• Trust deed: The document in terms of which the Trust is established. It outlines the terms of agreement for a Trust by setting out the rules for what can and cannot be done in a Trust.
• Letter of Authority: A letter from the Master of High court with information on who the trustees are and giving the trustees the authority to act within the interests of the trust.

Home loan documents required for a building loan

If you want to build your dream home, you will need a building loan and for that, in general, you will need to submit the following documents:

• Building plans and quotes: You will need the approved and stamped building plan which shows the number of rooms and sizes. The quotation needs to display the detailed pricing, the size of the vacant land and the size of the building on the land.
• Building contract: A contract that is signed by you and your builder and that includes the contract price.
• Builder’s NHBRC Certificate: A valid certificate showing that your builder is approved by the National Home Builders Registration Council (NHBRC).
• Schedule of finishes: A document clearly indicating the material used and the costs for erecting the building.

Get expert property advice

If you’re thinking of taking the big leap into the property market, before you worry about the home loan, contact your local RE/MAX office to help you find the dream home that is worth lacing offer on.