Pre-qualification and pre-approval
When you want to buy a property, an agent will tell you: “we want to know how much you pre-qualify for because we want to make sure that we’re not wasting our time!”.
Though the terminology is something to be changed, the concept is quite simple.
Once you have checked out the affordability and repayments calculator, and know what you can afford.
You are now serious about looking for a property.
As someone who is serious, you can take the next step and get a pre-qualification certificate that states how much you can afford.
What is pre-qualification?
Having an idea of how much you can afford and how much you can pay back is not nearly enough proof that you actually can afford a loan.
This is why many mortgage originators (and estate agents) have developed a certificate so that you have something to show people that you are serious about buying. As a rough guideline, it means that according to their knowledge, you have the means to afford a certain amount of money.
It does not mean that the bank will lend you this money, but it does give you a much better idea within your personal financial situation. You need to see it as the most accurate guideline we have before submitting our loan application to the bank on how much the bank will most probably lend you.

What is the difference between pre-qualification and affordability?
Conclusion
Though not a requirement when buying a property, it is convenient to use it as leverage to prove that you’re serious. If the agent knows that you can afford only e.g. a R 1 000 000 000 000 bond, he will show you properties in this price range.
This will save you time and give you leverage.
Now that you know about pre-qualification certificates, go now!
Happy investing.

Frugal Local runs his own company (Effectify). He does software development and helps small businesses and startups with digital solutions. He enjoys writing articles and simplifying complex things – such as the article you’re reading!
Good article. The link to the “affordability and credit expenses” (just before the conclusion) doesn’t work; as in there’s no link if you hover the mouse pointer over the red text. 😀
Oh my! That’s embarrassing! Just fixed it, and should be working. Thanks so much for your feedback 🙂