Frequently Asked Questions

What is Mortgage Origination?

Mortgage origination is a process whereby the originator on behalf of the applicant or applicants applies to the various major banks for a homeloan.

We all understand applying for a mortgage loan is long involving procedure, many clients that apply for a homeloan on there own, need constantly to contact the bank on the progress of outcome of there application which takes out time from there daily schedules.

We as the mortgage originator are there to take the hassle away from the applicants by assisting in applying and providing extensive feedback on a daily bases to you of the application.

We are there to provide you with the following services as originators:

  • Evaluating your financial situation;
  • Advising you on the best way of financing your new home;
  • Helping you apply for finance;
  • Explaining all the different banks’ home loan options;
  • Negotiating and liaising with the banks on your behalf;
  • Assisting with all the necessary paperwork to apply for a home loan;

9 STEPS OF THE MORTAGE ORIGINATION CYCLE:

  • Step 1: THE APPLICANT SIGN A OFFER TO PURCHASE FOR A HOME.
  • Step 2: Estate agent obtains information regarding how your home would be financed?
  • Step 3: The estate agent then forwards this information to us.
  • Step 4: Orginator will then contact you advising what the different banks can offer you.
  • Step 5: You then choose an option or a homeloan that is agreeable to your needs.
  • Step 6: Orginator submits the necessary documentation to the bank of your choice.
  • Step 7: Orginator follows up the application process with the bank.
  • Step 8: Orginator confirms with you, your acceptance with the bank.
  • Step 9: Orginator informs you of all the legal requirements and follows-up the process.

A Mortgage Originator cannot guarantee you a home loan.

Thru the daily consulting and liaising with the major banks the originators maintain and establish relationships with the bank; however the relationship that is maintained by the originator does not influence the banks credit decision. The outcome of the homeloan is determined by affordability by the buyer being able to afford the homeloan and the willingness of the homebuyer to repay it .

How much does this service cost?

There is no cost involved in using us. The service is generally free to the homebuyer. The estate agent is paid a standard commission by us for referring the homebuyer. We are paid a fee by the bank, once the home loan is registered. These fees are usually a percentage of the home loan amount, but is not added to the costs that the homebuyer may occur. An administration fee of R1500 will be administrated to the client if a bond is not taken up. This will only occur if all avenues have been completed and the client request to WITHDRAW from the application.

USEFUL HINTS ON DEALING WITH MORTGAGE ORIGINATORS

  • With regards to the new NCA (National Credit Act ) you have to sign an agreement with an Bond Originator to varify that the information given to them is correct, however if you decide to use them it is to your own benefit to supply them with all the required information and documentation, as soon as possible and on time.
  • Do a bit of homework regarding what the different banks offer. Your Bond Originator will inform you of the various products available from the banks.
  • You may already have a relationship with a particular bank, and would like to keep all your finance within that relationship. If so, make sure that you mention this fact to your originator, and specify that they apply to that particular bank on your behalf first.
  • The originator should follows up the application process with the bank dayley and should keeps you abreast of what is happening at all time. Ensure that you are kept informed through the whole process, from signing the offer to purchase, to registration and transfer.
  • Take time to compare all the different options the originator comes back with. Make sure that you read your contract with the bank. Take note of the period of your loan and your interestrate.
  • You are not obliged to accept any of the offers the mortgage originators bring to you from the banks. A fee can be charge for time spent on your application. Make sure to obtain documented proof of your approved home loan.