If you want to buy the house of your dreams, it’s important to avoid these home loan mistakes.
Being approved for a home loan takes a lot of work, especially for first timers. There are many common home loan mistakes you are going to want to avoid making if you are to receive approval. Most home loan mistakes are about knowledge, so make sure you’re informed before applying. With that in mind, here’s what you need to look out for.
Common home loan mistakes
Not knowing your budget
You wouldn’t walk into a restaurant and order a meal without knowing how much you had to spend. Well, the same thing goes for houses. Among the most common home loan mistakes is applying for a property you can’t afford. Aiming for an expensive property when your savings can’t handle it will only get your application denied. Always look for properties that match what your current bank account can afford.
Having a bad credit score
A good credit history shows an applicant is responsible with his or her finances and is capable of paying the mortgage. If you have a middling credit score, increase it before applying for a mortgage. This will see your chances for approval skyrocket.
Not comparing loans
Like all major purchases, it is important to look around and find the best deal. There are three home loan types Filipino homebuyers should consider. There are the Pag-IBIG loan, a bank home loan and in-house financing. Shop around and compare each option before applying.
Applying for a home loan requires you to submit numerous documents to the lender. Before starting the process, make sure you have a list of what you are expected to submit. Before handing over all the paperwork, double check the list to make sure everything is there. This will save you a lot of time and headaches.
Dot Property Philippines makes life easy
Thanks to a special partnership with BPI Family Savings Bank, you will find an easy to use mortgage calculator on all listings. You can adjust the property price, interest rate, down payment and loan term to find what suits you best. You can also request interest rates from BPI Family Savings Bank be sent directly to your inbox.
Additionally, those searching for a new home using Dot Property Philippines will have access to the special offer that is only available until 31 October of this year. A minimum loan amount of PHP 400,000 and a minimum loan term of ten years must be met in order to be eligible for the special promotion.
Everything is made simple. Find the property you want to buy, get the interest rates and start on applying for a home loan. Just make sure you avoid the common home loan mistakes mentioned in this article.