Buying a house? Tips to a smooth home loan application

Owning a house is one of the aspirations for a lot of hardworking Filipinos. But to save up for a decent home is no easy feat as it takes dexterity, diligence, and dedication. Another key to this dream is a loan package with a payment scheme and an application process that doesn’t feel cumbersome.

To better prepare you apply for a home loan, Philippine Savings Bank (PSBank) lets you in on some of some tips for a smooth loan process, ensure approval and avoid delays:

If you are a first-time homebuyer, it pays to understand what your options are and which one best suits you, the requirements and process involve in securing a loan.

Lenders usually provide home loan decisions in a week or two to a month and considering the volume of paperwork involved, processing applications takes a little longer. Good thing, some financial institutions does not only help and make the loan application process easier and convenient, but they also inform you of the status of your loan application. So aside from affordability, be in the lookout for lenders that offer these. Ensure that you provide all the needed information on the loan application form, such as contact, employment, and financial details. Never leave any mandatory fields blank. Also make sure that the required documents are complete, up-to-date, and validated or verified.

Maintain a good credit score or history by paying your monthly amortization or dues diligently. A lot of loan applicants get rejected outright for having an unsatisfactory repayment track record. Request and keep clearance certifications of credit cards and loan accounts that you’ve closed or paid off. You might need to present these and help improve your credit score.

The borrower shoulders the 15 to 20 percent of the property’s purchasing price as down payment. Hence, having sufficient funds to cover this is necessary.

If you don’t have it, consider saving more or reducing the amount of your home loan requirement in line with a lower downpayment.

Aside from this, you will need to have funds available for closing costs such as processing fees, insurance, valuation dues, and the like.

Having a steady source of income is important as this will boost your lender’s confidence that you can indeed repay your loan. Therefore, you should not quit or change jobs before applying for a housing loan.

Some applicants try to skew the truth of their credit or financial situation to have a better chance of having their loan application approved. What they don’t know is that banks in the country cross-check records with other financial institutions based on applicant’s credit history.

One wrong declaration of asset can decline a mortgage loan paper.