Tuesday, March 4, 2014
A home loan enables you to own your dream home earlier on in life and provides several financial benefits. Applying for a home loan can be a stringent process. Here's how to ensure a successful loan application...
While the cost of the property is the primary expense that needs to be addressed by a home loan, don’t discount other expenses. These may include title transfer taxes and fees.
Declare your financial situation
In a home loan application, the bank has requirements on eligibility which include performing background and credit checks. It is important, therefore, that you declare your financial situation openly, and avoid omitting any information regarding your family income, expenses and outstanding debts. You may think that withholding information may make your financial situation look more attractive and agreeable, however, inaccurate information may prove to be more detrimental to your home loan application. If the bank finds out you’ve supplied wrong information upon verification, this will result in your application being denied.
Apply for a home loan early
Keep in mind that a home loan application is a process that may take time to complete successfully. Consider the amount of time a loan application may take, so you can meet your financial obligations in a timely manner. Factor in the bank’s evaluation period, documentation process, issuance of bank checks and other paperwork. Home loan procedures in the Philippines typically take one to two months, however, it is best to ask your bank for a more exact time period.
Consider all expenses
While the cost of the property is the primary expense that needs to be addressed by a home loan, don’t discount other expenses. These may include title transfer taxes and fees. If you’re buying a pre-owned home, you should also consider expenses you may incur for repairs and renovation. Repair and renovation costs are particularly tricky to estimate, as some damages are difficult to detect and only surface later on. Allow for some leeway in your loan amount for these expenses.