GETTING STARTED ONYOURDREAMHOME

It’s easy to be overwhelmed by the idea of buying a home. After all, there will likely be a lot of pressure riding on such a big ticket purchase particularly if it involves one’s hard earned savings. You will have to identify which development fits both your budget and lifestyle, know how you’ll start the process, check what documents you should secure, and find out where best to avail of a home loan.

Regardless of how tedious the process may seem, it will always be a tad easier for the well-informed buyer who can find the right partner in this life changing decision. Here are some tips to get you started on your dream home.

Do your research

It pays to fully understand what you’re getting into. Make sure to do an extensive research on what kind of development you’re eyeing, whether it suits your desired lifestyle and if you can afford it; the requirements in buying a home; and the different kind of loan facilities you can avail of. Be on the look out for promos as this may allow you to save on some of the costs.

Once you’ve made your choice, secure all necessary documents and ensure that all information provided are updated and verified. Banks usually provide a checklist of requirements so best to make that your guide. Doing so will save you time from going back and forth the bank.

Maintain good credit

Make sure that as early as now, you keep a good credit score by paying your monthly dues diligently. Many loan applicants get rejected outright for having an unsatisfactory repayment track record.

Request and keep clearance certifications of credit cards and loans that you’ve closed or paid off. You might need to present these to help improve your credit score.

Best also to remain honest when it comes to your financial situation, as one wrong declaration of asset can decline a mortgage loan paper.

Ensure sufficient funds

Before making that big jump, check if you’re financially fit to take out a home loan. At the onset, the borrower needs to shell out as much as 20 percent of the cost as downpayment.

But there are other costs too, such as processing fees, association dues, insurance and valuation dues—and all these will be on top of one’s monthly amortization. Bank websites usually have loan calculators so you can run a simulation to check if the monthly dues can be more than covered by your income.

To boost your creditworthiness as a borrower, make sure as well that you have a steady source of income.

“The home loan application process is a broad spectrum. We hope these tips will provide prospective home loan borrowers with an understanding of the application process to keep them from running