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HOW LONG DOES THE HOME LOAN APPROVAL PROCESS TAKE?
First-time home buyers and owners who are eager to sell often wait in anticipation to get feedback from the bank on the status of a home loan application.

Stanley Mabulu, Channel Management Head at FNB Home Loans, says the amount of time it takes for a home loan application to be approved often depends on several factors, impacting both the bank and customers.

“Ideally, it should take a minimum of one week to get complete approval, however, due to application backlogs, delays or customers not meeting certain requirements, the process can be delayed for at least two to four weeks at most,” adds Mabulu.

He unpacks the time it normally takes a bank to grant a 100% home loan to a customer with a good credit profile, provided there are no interruptions:

Day one

The applicant provides the bank with their personal details, three months’ bank statements, property description, proof of identification, address and income, as well as a signed offer to purchase.

The bank confirms receipt of the information and validates if all the documents submitted are in order.

Day two

The bank will access the application taking into account the location, market value of the property, deposit, as well as the affordability and credit score of the customer.

Day three

The customer is contacted and informed of the bank’s decision to approve the application ‘in principle’. This condition is subject to the bank assessing the property to ensure it is in good condition, and that the sale price aligns to its market value.

Day four

The bank assigns an assessor to evaluate the property being purchased.

Day five

If the evaluation has been successful, the bank then prepares a formal contract or quote detailing the terms and conditions of the home loan, as well as the interest rate to be charged.

Mabulu says before applying for a home loan, it is essential that you first understand how a credit profile works and whether you are in good standing. You can also achieve this by requesting a pre-approval from your bank to determine how much you qualify for.

“When applying for a home loan it is important to ensure that you have provided the bank with all the information required. A majority of delays often result from the bank having to contact customers to get accurate or missing information,” adds Mabulu.

Consumers who require clarity about the home loan application process are encouraged to contact their bank for assistance.


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8A Gert Kotze Street,
Brackenfell,
Western Cape,
South Africa, 7560
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021 982 0965
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021 982 2509
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23 A Plein Street,
Grand Central,
Eerste River,
Western Cape,
7100

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021 902 0246

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021 982 2509


ABOUT FPS PROPERTIES



Founded by Freddie P. Steyn in 2015, FPS Properties is one of the newest estate agencies in the Northern Suburbs of Cape Town. We are professional, dynamic and fully accredited estate agency. We strive to give all our clients professional and cost effective services to ensure that your property is rented or sold within the amount of time.

FPS Properties is supported by FPS Attorneys who will ensure that all transactions are correctly executed and furthermore will gladly assist with any and all legal queries to give you the added peace of mind.

Our agents are friendly and efficient and will gladly do free property valuations and provide sound property advice.

In short FPS Properties’ philosophy is simple… that by working closely with the client and becoming attuned to their business ethos, we can deliver pro-active and effective solutions thus creating ~ ”Clients for Life”

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