A quick fix is not a good idea!

We all have an idea of what the banks look at when applying for finance for a property, but there are a couple of pointers most people are not aware.

I am writing today to create awareness and to help you to create wealth and become financially free!

Many people I get in touch with daily to assist with a home loan or a pre-qualification understand the magnitude of a good credit record, and pay their accounts on time and in full every month. Some of these people do this by taking a "pay day loan" those "get-cash-quick-deals" (usually at an ATM or by SMS) where you just need a few bucks to get through the month, and you pay it back as soon as you get paid at the end of the month... Almost like an overdraft on a cheque account, but it is much different.

Sounds like a good idea, right? WRONG!!

When the banks pick up you pay your accounts in this way, they interpret it as you cannot get by with your income and therefore you can not pay a new home loan on top of your current expenses, so they decline the loan. Think about it, your credit record shows each quick loan as a separate credit agreement on your profile and if there are 5 or 6 of these in a short period, you seem "credit dependent"...

May I suggest a better, and more permanent solution?

Make a list of all your current debt (accounts to be paid) and start with the smallest one, pay in as much as you possibly can and close that account as soon as possible. Then you take the second smallest account and do the same. Pretty soon you will have control over your finances and you can get finance for tangible things like property to build your wealth portfolio.

Stay away from short term debt!

It might take a while, and the banks will consider your credit profile of the last 24 months, but once you have this under control you are well on your way to financial freedom!

To track your progress you can get 1 free credit report annually from the credit bureaus in SA, or you can approach a mortgage originator such as MortgageMax Advanced to do a free pre-qualification and get advice on how to change your financial habits to be in a position to get mortgage finance from the major banks in SA.

For any advise or assistance with the above, please do not hesitate to get in touch! http://mmadvanced.wixsite.com/mmadvanced