Most people think that once they’ve submitted their home loan application, it heads straight to a credit analyst who decides whether it’s approved or declined. In reality, there’s a lot that happens before it even reaches a credit analyst’s desk — and if you’re not prepared, your application might not even make it that far.

Here’s a behind-the-scenes look at the early part of the bond journey — and why preparation is everything.

Step 1: Pre-Credit Checks – The First Gate

Before your application even sees the light of day in the credit department, it goes through a pre-credit process. Think of this as a filter or triage system where the bank quickly checks whether your application meets basic system and policy requirements.

At this stage, the following is reviewed:

• Are all documents present and legible? (ID, payslips, bank statements, offer to purchase, etc.)
• Are the documents recent and relevant? (No outdated payslips or expired offers)
• Do the numbers add up? (Basic affordability and income checks)
• Is there consistency between payslips and bank statements?
• Are there obvious signs of tampering or fraud?

If anything is missing, contradictory, or suspicious, the application might be rejected outright, kicked back for “more info”, or delayed in the pipeline, especially if it sits with an overburdened administration team. Despite banks seemingly having a lot of staff, they are actually light on resources when it comes to sales and intake in the home loan department – exactly why the bond origination industry has developed over the last 25 years.

Step 2: Audit – Policy & Risk Compliance

Once it passes the pre-credit stage, the application typically hits an audit layer — a stage many applicants and even some estate agents aren’t aware of.

At this stage, banks double-check that the application meets internal policy guidelines, including:

• Income structure (fixed vs variable)
• Employer verification (does your employer exist and pay regularly?)
• Bank account consistency
• Document authenticity
• Source of funds (especially for deposits)

This is also where third-party tools like anti-fraud software, document verification, and even machine learning systems come into play.

Many applications are declined here — before a human analyst even sees them — due to incorrect documents, irregular income, or fraud flags.

Why Your Application Might Be Declined Before a Credit Analyst Looks at It

Here are common early-stage rejection reasons:

• Bank statements or payslips appear edited or tampered with
• Foreign income or unverifiable employer
• Unclear or missing documents (especially proof of deposit)
• Mismatch between salary on payslip and what actually reflects in bank
• Glaring affordability issues (e.g. monthly expenses higher than income)
• Use of temporary income (like overtime or bonuses) that isn’t consistent
• Incorrect document format (e.g. screenshots instead of PDFs)

When Does a Credit Analyst Get Involved?

Only once your application has passed pre-credit and audit does it move to a credit analyst — typically a junior analyst for straightforward applications.

For more complex deals, such as:

• Self-employed or commission-based clients;
• High-value loans (R5 million+);
• Foreign income (if considered at all);
• Fluctuating or seasonal income; and
• Trust or company ownership structures;

…the application needs to be escalated to a senior credit analyst or a credit committee. This can add several days to the turnaround time — and also requires far more detailed supporting documents.

A senior analyst has more discretion, but also requires a clear, well-prepared file to motivate for an exception or override.

How to Avoid Pre-Credit Pitfalls

As an applicant, you can dramatically improve your chances by:

• Submitting clear, complete, and up-to-date documents;
• Ensuring all income is traceable and consistent;
• Avoiding screenshots or cropped PDFs;
• Including a cover sheet or motivation for complex deals (e.g. explaining variable income);
• Ensuring alignment between your presentation narrative and the documentary evidence; and
• Understanding what evidence should be presented to assist the bank to mitigate risk.

Why you should approach an expert

Most bond applications don’t fail because of bad credit — they fail because they were poorly packaged, incomplete, or flagged in early checks. If you want your deal to even reach the right decision-makers, you need to get past the gatekeepers: pre-credit and audit.

By approaching an expert to structure your application properly — especially if you have a non-traditional income — you give yourself the best chance of success.

A mortgage broker is an expert in home loans, they understand how the bank assessment processes work, what the bank needs to mitigate risk and the best part – their service is usually free!

Use a reputable mortgage broker

Using a reputable broker will ensure you get more value out of this free service – including the full-scale service (as outline above), professional advice, utmost confidentiality and respect with your personal information, speedy approvals, competitive rates and priority with banks.

Phoenix Bonds is a premium mortgage broker in South Africa, with a proven track record (check out the reviews on Google).  For expert advice and personalised service, fill in your details HERE and one of our experienced Consultants will be in touch.