Jefanie Genilla
Buying a home is a major financial decision. For starters, you have to look for a suitable property to buy – one that is convenient for your family to live. Besides, you have to choose a profitable property – one that will increase in value in the future if not generates its own income as an asset.
Once you’ve chosen a prospect property, you have to find a reliable home financing provider. Now this is where issues on loan applications come in. How exactly can you guarantee that your loan gets approved? Do you even qualify for a home financing program? Yes, you do. And these seven easy steps will help you prepare for your loan application.
Find way to earn extra cash to save up for the upfront fee
Take up freelance projects if you have extra time at home. Or you can schedule a garage sale to dispose and earn a little money from the household stuff you no longer use. Proceeds of these projects will then go to your upfront fee. Remember, the more you pay for the down payment the lower the total loan would cost.
Research and compare the costs of the current home loan offers on the market
Don’t jump in too hastily into an offer without doing enough research. You can refer to the loan products page with features at loansolutions.ph to know the perks, requirements and components of specific loan providers, banks and private lenders alike.
Contact a real estate broker to help you find a good property to buy
Call a broker to help you choose a suitable home to buy. Brokers know the best location and types of homes to buy – ones that we’ll surely appreciate in the coming years.
Set your budget limits
Set how much you’re willing to cash out for your home, both for the down payment and for its total cost. It also helps to estimate your monthly budget in advance, including the amortization you’re going to pay and your recurring household expenses.
Know what to compromise for your home
You don’t have to buy everything at your first contract. To lower the overall cost of your property, you must have to learn to compromise. For instance, you might like to forego the landscaping or garage if you’re building your own structure.
Set up a backup plan
Make room for emergency expenses in your budget. This will be your preparation should your initial plan won’t work. You can also find a refinancing provider in advance. However, maintain a positive attitude toward your purchase.
Don’t open additional accounts
Avoid opening another credit account or applying for other loans because these can reflect on your credit history in a negative way. Make sure to give the lender an assurance that you’re capable of paying your loan.
Applying for a home loan requires you to show off a positive credit status. At the same time, you should be vigilant about your budget, choice of property to buy and the current rates on the market. By considering the tips above, you’ll be able to prepare for your application effectively. Or if you still need assistance, feel free to call our loan consultants at Loansolutions PH.
