Applying for a bond in today’s world is quite a challenge, as is the case with all credit. A little bit of preparation prior to applying will ensure you are bond ready, plus you will learn how to live within your means. Bond requirements are getting tougher, therefore it will do little harm to call on the services of home loans advisers, as they will be able to offer some really pertinent advice and they are experienced professionals who really know exactly what the banks are looking for when applying for a home loan.
Here are 10 steps that will teach you to live within your means – bear in mind that living a debt-free life will lead to getting the bond you need to buy your dream home:
- Keep a diary of all your daily expenses and see where you are spending your money unnecessarily – everyone wastes money on little things such as take-outs instead of packing a lunch which could be as much as R40 a pop (R200 a week – R800 a month!) which is a lot of money for bad food that will lead to an early death (this is another subject altogether).
- Approaching your child’s school is not undignified if you need to ask for financial aid. Schools cost a lot of money, especially if your child attends a private school.
- Always try to get better rates from your estate agent when selling your home. Estate agents usually ask for a 7% commission, but you can whittle this down to 4 or 5%.
- Take out a cheaper DSTV package, and if you are really smart you will teach your kids to be kids – take them for a picnic or teach them to fall in love with the library; this way everyone wins.
- Get a smaller car which is cheaper to run – you will save a fortune on repairs and petrol.
- Close accounts that are no longer in use; did you know that credit providers assess the full facility of the credit agreements on record, even if they are not being used?
- Pay your most expensive debts off first, as these are charging the most interest.
- Always pay off at least the minimum amount on accounts to improve your credit worthiness (this is really important).
- Ignoring a letter of demand is foolish – you need to be proactive at all times to avoid jeopardizing your credit record.
- As soon as that credit card is paid up, cut it up as this will avoid you from ever using it again.
Teach yourself to live within your means prior to applying for a bond, then approach a bond originator to assist in accomplishing that dream.