Everyone dreams of acquiring the best possible home of their own, however, since properties frequently cost hundreds of thousands, if not millions of pesos, most people cxannot afford to pay the full purchase price in cash up front. Given the exorbitant and ever rising cost of real estate, turning the dream into a reality may seem really impossible. But worry not! The trusty home loan, that can be at very low interest rates, comes to the rescue for the realization of your dream. Find out if you’re ready to take on a home loan by checking the things we mention in this article.
Planning to buy your very own home soon? Here’s how a home loan can help you.
Taking out a home loan can be a major decision in someone’s life. When someone is considering a home loan for the first time, it can usually appear intimidating due to the considerable financial planning that is necessary and the protracted application process. One should think of the best time for a home loan and when are interest low.
A home loan is a quantity of money that a person loans from a bank or other financial organization in order to buy residential or commercial property. Depending on the loan’s terms, the debtor must then repay the lender for the loan in Easy Monthly Installments (EMI) at the agreed-upon home loan interest rate over a period of time, which usually range from 10 to 30 years.
3 Things you should check in your status to ensure a successful home loan application
If you’re contemplating to get a home loan and unclear of the best time to do so, learn the factors that impact your home loan eligibility. Make sure you’re financially ready with these three things before applying for a home loan to ensure success in your application.
1. When your credit score is high
There is some risk involved with every sort of loan, both for you as the borrower and for the lenders. Offering the greatest terms to those with the strongest credit scores is one-way lenders can protect themselves. A lender may completely reject a borrower’s home loan application if they decide that the borrower’s credit history isn’t strong enough. Your chances of getting a home loan approval generally increase with your credit score. If you have a very good or superb score, you’ll also get low interest rates on your loan.
2. When your income is stable
Home loan lenders often need documentation showing that you have a reliable source of income and job. For that, they will look over your several years’ worth of tax returns. Ideally, your tax returns should show a steady or gradually increasing income over time. Lenders often look at both your income and your employment history. They typically need proof that you have at least two years of employment with the same employer. If you are self-employed, lenders will need verification of your earnings for at least two years. You may need to wait a few years before applying for a home loan if you’ve just started a new job or are just starting your career to give your income and employment time to stabilize. Not only does having a history of steady income affect your ability to obtain a home loan, it also affects the size of the house you can afford to acquire.
3. When you have enough savings
How much cash must you have in savings before you can apply for a home loan? According to conventional thinking, it is ideal if you have at least enough money to put down 20% of the home’s cost. It’s ideal if you have saved up that much money, however, just because you don’t have that much cash on hand doesn’t imply you won’t be able obtain a home loan.
Read Also: Ipon Challenges to Try to Save up for your Home
If you’re considering getting a housing loan, you might be wondering whether this is the best time for a home loan or if it’s difficult to get one at the moment. You would also want to know the dates when are interest low. In reality, it is up to each buyer to determine when it is best to file a home loan application. Your credit history, quantity of savings, income, and employment history, to name a few factors, may be used to determine your eligibility for a home loan as well as what kind of interest rate and conditions you’ll receive. The best time for a home loan also depends on other factors, such as market rates and the season, that are often out of your control.
When is the ideal time of the month for a home loan application?
It can be beneficial to consider the time of the month as you prepare to submit a home loan application. The first few business days of the month are always the ideal time to begin the loan application process. Lenders are typically particularly focused on securing and establishing new loans at this time. Loan officers and processors will be delighted to return your calls and thoroughly go through your loan alternatives and conditions with you. Though it may not always be the case, it is true that most lenders are seeking for new business at the beginning of the month, while the middle of the month is when they assemble all the necessary paperwork and get the loans ready for final approval. However, this does not mean that you should only apply for a mortgage at the beginning of the month. Lenders are accessible round-the-clock. Even so, it can be advantageous to get in touch with a lender sooner rather than later in the month if you want to get the most attention.
On the other side, the final week of the month is the worst week to submit an application. Brokers will be pressed for time to close as many loans as they can. In order to satisfy monthly targets and compensation goals, a lender will still need to close on their existing loans even if they desire to work on new applications. You’ll probably find yourself waiting for the beginning of a new month under these circumstances. For both lenders and borrowers, the end of the month is frequently the ideal time to close on a home loan. Again, this isn’t always the case, but it has been demonstrated to be accurate numerous times.
Read Also: Home Impossible? Reasons why your bank housing loan might be rejected
Be Ready for a Home Loan with Bria
Bria Homes wants to assist Filipinos in realizing the dream of homeownership. No matter where you are in life, Bria Homes wants to assist you in finding the best time for a home loan for you with low interest rates. Here in the Philippines, home loans come in two distinct categories: public and private. The Pag-IBIG housing loan, and other public home loans are obtained from governmental organizations. Pag-IBIG members who have made at least 24 consecutive monthly contributions may apply for a low-interest housing loan from the organization to assist finance the purchase of their ideal home. Housing loans from Pag-IBIG are renowned for their low interest rates and accommodating payment arrangements. For individuals wishing to make a sensible investment in a house and lot, this is a desirable option for their extended fixing periods and lower processing fees.
Private house loans from the biggest and most reputable banks in the nation are another option available to aspiring homeowners. The borrower can choose a housing loan that best fits their needs and current financial status from among the many banks that offer them.
Bria Homes will support you every step of the process, whether you decide to take out a home loan from a bank or the government. Your documentation will be processed quickly and efficiently by Bria Homes so you can acquire the home of your dreams.