Given the current strict home lending conditions, aspirant buyers are being advised to establish their home loan worth with their banks or home loan consultant before entering the market. 

So says Grant Gavin, broker/owner of Durban North franchise RE/MAX Panache, who notes that would-be buyers are still entering the market with little idea of their actual purchasing power often resulting in their own and the seller's disappointment when the application is rejected.

Because of the stricter credit conditions introduced by the 13-month old National Credit Act (NCA) and greater sensitivity by the banks toward applications in the current high interest rate environment, Gavin says it's important homebuyers be professionally evaluated on their home loan worth. Soaring stock levels with the emergence of some good buys is also encouraging buyers to overestimate their worth.

He points out the evaluations are free and can also be particularly meaningful in substantiating an offer to purchase. "If the seller is confident of a buyer obtaining a home loan commensurate to the agreed selling price it can make a huge difference in the offer being either accepted or rejected.

www.property24.co.za

17/07/2008