One of the first obstacles we had to overcome when starting the building process was getting finance for our house build. And we knew it would be tricky to get finance as we both have overseas businesses. With that in mind, and based on recommendations from friends, we consulted with a bond originator.
What is a Bond Originator?
A bond originator is a professional who acts as a middle man between you and the bank. They will help assess your financial situation, compile your paperwork and submit your application to the bank on your behalf.
They also take it one step further. The bond originator has a really good understanding of what the banks are looking for when it comes to understanding your financial position so they can help present your case to the banks in the way that makes the most sense to them. This will help speed up your loan application process.
So, here are 10 reasons we used a bond originator to apply for our building loan:
Bond Originators have Expertise and Experience:
No matter what the complexities of your financial situation, chances are your bond originator has dealt with something similar before. They have expert knowledge of the home loan industry and know how to build a loan package that will help you get approved quickly and easily.
They also take it a step further. When we were applying for our first draw down from our building loan, we had very little idea of how the process worked. Part of the service that Patrick from BondExcel offered is support in doing the first draw down. Thus, we weren’t left feeling confused and lost.
Bond Originators Help to Streamline the Application Process:
There is a lot of going forward and back during the application process. Your bond originator liaises with the bank on your behalf to ensure that everything flows smoothly. They can field any questions on your behalf if necessary and come back to you if more documentation is needed.
Bond Originators have Access to Multiple Lenders:
Most South African banks offer building or home loans. And you can go to each bank individually but this can be time consuming and frustrating.
However, a bond originator is able to access multiple lenders so you won’t have to do that. They can compare and contrast the different offers from various banks, giving you a better view of your options.
Bond Originators Negotiate on your Behalf:
When you’re dealing with multiple lenders, there are all sorts of fees and other associated costs that can be up for negotiation. A bond originator is able to negotiate on your behalf and get you the best deal possible. This will save you time and money in the long run.
Bond Originators will do Comparative Analysis on your Behalf:
If you’re applying to multiple banks, hopefully you will get multiple offers of home loans. They will more than likely offer various terms, such as:
- interest rates
- length of the loan (up to 30 years)
- cash back or another incentive
Your bond originator will be able to go through each of these offers and help you compare each offer, making sure you get the best one for your situation. The originator will have knowledge of the market and be able to tell you which offer is likely to give you the most savings in terms of interest payments, cash back or any other incentive.
No Upfront Costs when using a Bond Originator:
Using a bond originator is free of charge as they are paid a commission by the bank when your loan has been approved and you have accepted it. That means that you benefit from their many years of experience, industry knowledge and can apply to multiple banks without having to pay any upfront fees.
Basically, there is no risk to you. You can only stand to benefit.
Bond Originators Offer Personalised Loan Solutions:
With a bond originator you can be sure that the most suitable loan solution has been found. They will take all of your individual requirements and credit profile into account when searching for the perfect lender, to ensure you have the best deal possible.
By working with a bond originator, you can also rest assure knowing that your application is being completed correctly, and that you won’t be left with any surprises when it comes to your loan agreement.
A Bond Originator can Help you Save Money:
Bond originators are highly experienced in the loan process, and can help you save a significant amount of money on your loan. This is due to their knowledge of the market, allowing them to find an option that fits your exact needs and budget.
They can also assist you in negotiating more attractive terms with lenders, as well as help you to avoid the common mistakes that people make when taking out a loan.
Bond Originators also offer Value-added Services:
In addition to securing building loans, bond originators often offer value-added services. These may include assistance with insurance, legal processes, property valuation, and other related services, providing borrowers with comprehensive support.
Our bond originator, Patrick from BondExcel, also helped us with our first draw down for our building loan. We were so unsure of the process for initiating a draw down and to have the help of our bond originator was invaluable.
Professional Advice and Guidance for your Bond Originator:
Although we’ve owned a home before, it was in the UK where things work very differently to South Africa. We had a lot of questions about how the building loan works, how we should structure our finance and what the implications were.
It was comforting to have our bond originator on our side as he provided us with professional advice and guidance throughout the entire process from start to finish. He explained everything in a way that was easy to understand, went out of his way to answer any queries we had and was always available for follow ups.
Our initial application for a building loan was declined by all of the banks and Patrick gave us some awesome guidance so that when we re-applied for a loan three months later, we were approved by one of the banks.
Bond originators act as trusted advisors throughout the loan application process. They offer expert guidance, clarifying complex concepts, answering questions, and providing borrowers with insight into the current loan market.
Bond Originators offer Peace of Mind:
Let’s be honest… Buying or building a home is so exciting and so stressful all at the same time. Bond originators can shoulder some of that stress for you.
By engaging a bond originator, you can have peace of mind knowing that your loan application is in capable hands. You can rely on the expertise and experience of the bond originator, reducing stress and ensuring a smoother loan application experience.
How Can I Find a Good Bond Originator?
The best way to find a good bond originator is to ask others who have used them. Ask friends, family, and co-workers for referrals or do an online search – there are several review websites that can help you with this.
We used Thea and Patrick from BondExcel and cannot recommend them enough. They work nationwide and went above and beyond to help us secure a building loan to build our house.
Once you have found a prospective bond originator, always make sure to read reviews before making your decision. When speaking to the bond originator, ask questions about their experience in the industry, how long they’ve been doing this type of work, and what procedures they will use to help you with your loan application.
Summing it Up
So, there you have it. 10 awesome reasons to apply for a building or home loan through a bond originator. We firmly believe that if we hadn’t have used Patrick and Thea from BondExcel for our building loan application, our dream of building our own home would have been a lot harder.
So don’t be afraid to contact a bond originator if you’re looking to secure a building loan for your next project; they can really help make the process smoother and quicker!
