House hunting without knowing what you can actually afford is a little like arriving at an auction with plenty of enthusiasm but no wallet. Exciting, perhaps, but potentially awkward.  So, before falling in love with the view, kitchen island and a property that is “only slightly over budget”, it makes sense to get pre-qualified for a home loan beforehand.

Pre-qualification gives you an indication of what you may be able to afford based on your income, monthly expenses, existing debt and credit record. It gives you a realistic budget while also flagging potential problems before you start house hunting.

RE/MAX Southern Africa partners with BetterBond, a bond originator that can assess your finances, arrange pre-approval and approach multiple banks on your behalf. The service is free to the buyer, and your RE/MAX property professional can help connect you with a BetterBond consultant to get the process started.

Typically, you’ll need to provide information such as your latest payslip, bank statement and ID, along with details of any existing financial commitments. A BetterBond pre-approval certificate is valid for three months and provides an indication of what you could qualify for, including bond and transfer costs.

What could affect your application? Income is obviously part of the story, but so are existing debt repayments, living expenses and your credit history. A healthy salary does not necessarily cancel out a spectacular collection of store cards and monthly commitments. Banks tend to have a keen interest in the numbers!

A building loan adds a little more paperwork to the plot. Instead of financing an existing home, the bank is financing construction, so you’ll generally need approved plans, building contracts, costings and other project documentation. Funds are then released in stages as construction progresses.

So, what’s the next step? Before you start scrolling through property listings, speak to your RE/MAX agent and ask them to connect you with BetterBond for pre-approval. You’ll know your budget, understand your buying power and be in a much stronger position when the right property comes along.

Then you can house hunt with confidence, rather than discovering that your dream home and your bank account have very different dreams.