Nick Wilson
26 August 2008
Johannesburg — Mortgage origination group Ooba yesterday announced it would be offering a free service to "help counter the problem of failed property sales from buyers unable to secure enough financing".
According to Ooba's statistics, about a third of sales were falling through because of banks declining home loans, buyers only obtaining partial financing, and sales falling through in the normal course of business, CEO Saul Geffen said .
Geffen said some of these sales would not fall through if the buyers had taken the time to understand "their affordability" and make sure they prequalified for a loan.
Jenny Rushin, provincial sales manager at Ooba, said the company had seen several offers to purchase falling through as potential buyers were not able to secure the finance they needed after their offers had been accepted.
"This is because they don't fully understand how to work out the size of the home loan they qualify for, and is also due to the fact that banks have tightened up on their lending criteria," she said.
The group's new service, called 'Oobaqualified', tells buyers how much they can spend before they look for a home on which to make an offer .
Buyers have to provide their income and expenditure details and would then obtain a certificate guaranteeing a home loan for an approved amount.
Rushin said pre qualified buyers were in a stronger position to negotiate with sellers.
Meanwhile, Geffen said residential property sales had stabilised over the past two months. He said the estate agencies with which ooba was dealing, and the group's own home loan application intake, had shown increased activity.
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