Home loans are finances that are given to people who want to purchase a flat or house to stay in. There are requirements that people are supposed to meet for them to qualify for a home loan, for instance, the individual should be in possession of the proof of income, proof of residence, proof of identification and should be over 18 years.
The monthly income of the borrower will determine the amount in which he qualifies for, for example, people who have low income can get money enough to purchase houses in high density suburbs whilst people who have high income can qualify for huge loans to purchase homes in low residential areas. Home loans can either be secured or unsecured; the former is whereby the financier is given collateral or warranty which allows to repossess the borrowers property when they fail to repay the money back as stated on the agreement. Unsecured loans do not offer the financier a warranty and they are largely small.
Home loans can be applied online using electronic gadgets such as computers and mobile phones without people having to travel to the financiers premises. Many financial institutions in South Africa if not all have websites online pregnant with all the information and steps for people to follow when applying for home loans. Original documents can be faxed or scanned and emailed to the financier.