Are you planning to get a home or mortgage loan but don’t know where to start? A home loan is undoubtedly one of the biggest loans you will be applying for, therefore; you should make sure that you can make the right decisions with our loan.
10 Home Loan Tips
Applying for a home loan is not easy for everyone where you still have to go through a long process before you can get your dream house, but with our home loan tips below, you would surely have an easier home loan application.
● Manage your credit score
One of the factors that could affect your home loan application is your credit history. If you have any outstanding loans, it would be harder for you to get a home loan that is why there are home loan applicants who would fix first their old debts so they won’t have a problem once they are going to apply for a home loan.
Your late payments can also be reflected in your credit history. Hence you have to remember always to pay your bills and debts on time. Putting your debts on top of your priority is an excellent move if you are planning to get any loan.
● Start saving now
When getting a home loan, a down payment will always be there, and if you can give a bigger down payment, you will have a higher chance of having a home loan approval.
Another benefit of paying a bigger down payment is that your monthly repayment would be lesser too which is a good help if you don’t want to encounter any shortage on your monthly expenses especially that home loan monthly repayments may be too expensive.
● Make use of a mortgage calculator
Before applying for a home loan, it is best if you already have an idea of how much would it cost you to purchase a house. There would be several factors that could affect your repayment terms, but if you wanted to have a rough estimate, you could always get used of a mortgage calculator which you can either found on the internet, or you may also download a mortgage calculator application.
● Gather your financial documents
When applying for a home loan in Singapore, licensed money lenders and banks would require you to submit all the documents they needed for your application. Some of the documents they would need are your two pay stubs, latest tax return, current bank statement and many more.
If you wanted to have a smoother home loan application, you could already start compiling all the necessary documents so you can save time in the future looking for these documents.
● Be pre-qualified
Some real estate agents would advise home loan applicants to be pre-qualified even before they are going to work with them finally. Being pre-qualified, you can give them the information necessary for a home loan approval such as being able to afford the monthly repayment.
● Compare offers
There a lot of licensed moneylenders in Singapore and you can find them everywhere including the malls and other crowded places. Since these licensed moneylenders are competing with each other when it comes to their offers and services; it will be your chance to find the best one among the moneylenders you found.
It is also advisable if you are going to talk to their representative, that way, they can thoroughly discuss with you their offers, and you can further understand how does a home loan work.
● Check interest rates
The interest rate of the home loan is indeed one of the most important factors you should consider when choosing a lender. These lenders have their interest rate that’s why you should check each moneylender in your area and find out which one has the lowest interest rate.
Interest rates could vary with your credit history as well. If you have a bad credit history, a lender might still give you a chance and offer you a home loan, but the consequence would be a higher interest rate because they are taking a risk upon giving you the loan.
● Understand loan options
Aside from the home loan, there are other types of loans too, and whenever you think that a home loan is not your thing, you may opt to check on the other loans available in Singapore, and you might find the one that suits your preference.
● Promptly respond to the lender
When applying for a home loan, you should see to it that you can respond to your lender right away especially with very important matters because a simple delay in responding to the lender could already cause a delay on your application.
● Maintain good credit history
Ever since you have started applying for any loan, you must remember that any mistake you are going to do with your debts will be seen on your credit history hence maintaining a good credit history is a great way to avoid any problem with future loans.