Ultimate Guide for Home Loan Application

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Purchasing a house, thru a termed housing loan, is a great form of investment which can give you huge returns in the future. Hence, if you intend to avail of the affordable home loans in Western Australia (WA), read the guidelines here.

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Ultimate Guide for Home Loan Application

  1. 1. Ultimate Guide for Home LoanApplication
  2. 2. In real property investment, you need to have careful and thoroughfinancial planning. If owning a residential unit is one for your short-termgoals, you need to assess first whether you are capable of paying therequired amount. If you have sufficient cash, pay in cash so you can doaway with interests; if not, apply for a home loan in any of the localfinancial institutions in your area.For more details on how to go about your loan application, read onbelow. IMPROVE YOUR CREDIT RECORD. If you have outstanding loans,be prompt in your payments, particularly over the installmentmonths leading to your loan application. Remember, every countof delinquency will affect your credit line record. Take note,however, that it will take nearly a year to improve your creditrecord. More importantly, an unused account won’t make anygood to your credit record; thus, the technique is to apply for aloan, pay the amount as it falls due, and then repeat. PRIORITIZE YOUR INTERESTS. If you believe a number of financialobligations will likely arise in time, get a housing loan early on.Filing various credit applications prior to filing a housing loan cancreate a negative impact on the latter loan. Banks and financialfirms are relatively strict in terms 0f multiple credit application. Infact, they have professional underwriters responsible in reviewingloan papers; if they notice that you have more than oneapplications, they might doubt your capacity to pay. COVER THE DOWN PAYMENT. Make sure you have sufficientamount to pay for the down payment. These days, you can get ahousing mortgage for as much as 90% of the home value, either atwo-storey or a one-storey home. If you can put up bigger downpayment, the better; that means you will have more equity. Thebigger the equity, the lesser the risk on the part of the borrower. SMALL AREA IS BETTER. If you haven’t availed of any loan before,the best way to do it is to think small. In other words, choose arelatively lower installment payment plan, either on a monthly or
  3. 3. quarterly basis. Remember, lending firms do avoid giving theirclients the so-called “payment shock,” especially for newcomers.Thus, the smaller the home loan, the better. What is important isyou are able to cover your obligations as they fall due. SECURE LOAN PRE-APPROVAL. This means you should prequalifyin your loan application. At the onset, the lending firm will conductcredit check which includes income verification and credit review.Once you get a pre-approval, then you are good to go.Lastly, you may look for mortgage brokers in your place and ask themhow to apply for mortgage loans. Other than banks and cooperatives,there are small financial companies that offer housing loan with minimalinterest rate. Just make sure you end up dealing with a reliable financialfirm.

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