How to get approved in a Home Loan Fast?

Different types of Bank Loans Philippines

Most aspiring homeowners must obtain a home loan in order to cover the cost of purchasing a property, and most borrowers are hoping their home loan application gets approved fast and without a hassle. Home loan applications are, however, only granted after a careful assessment because they involve huge amounts of money. It ensures that there are no bad debts and that the borrower repays the loan amount on time, but a minor error or mistake could lead to the rejection of a house loan application.

A Home Loan Rejection Can Hurt You in the Long Run

Getting your home loan application rejected can be emotionally distressing. After all, having your dream home ruined at the last minute after months of daydreaming about it can be very upsetting.  A house loan rejection might cause more problems than just emotional trauma. For instance, when an application for a home loan is rejected, it raises a red signal for other lenders, making it challenging to obtain a home loan from another lender in the near future. Therefore, you must ensure that your house loan is approved on your first try.

However, to acquire a home, you must have a trustworthy finance partner, which is typically a bank. Before you start looking for a bank that can assist you, keep in mind that applying for a home loan is significantly different than applying for a vehicle loan or obtaining a new credit line .If you compare the mortgage application procedure to other loan services offered by your bank, you’re sure to become upset. This is due to the time- and effort-intensive nature of the Philippine housing loan approval process, which can be rather draining. But you’ll go far if you arm yourself with useful information. Even your chances of getting your home loan application approved will be increased. Here are some of the matters you need to study.

Why Apply for a Home Loan at a Bank?

There are many ways to finance a home, including bank loans and the Pag-IBIG housing loan. But there is no denying that bank loans has a few advantages over them. Lower interest rates may be available from the Pag-IBIG Fund, but you might have to wait weeks to get the letter of approval. Meanwhile, the approval process for housing loans at some banks can be as fast as five banking days. In comparison to loans, banks often provide significantly lower home loan rates. Also much more flexible are the terms of their loans. Some banks provide amortizations that are payable over a 20-year period.

In the Philippines, bank housing loans can also be used for other things like buying a house lot, building a new house, or remodeling an existing one. A corporate loan from a real estate developer is different from this. If you are not planning to purchase the developer’s property that is being offered for pre-sale, you cannot qualify for in-house financing.

Read also: Know Your Options: In-House vs. Bank vs. Pag-IBIG Housing Loans

How to get approved in a Home Loan Fast: 10 Tips for Home Buyers in the Philippines

Some banks provide fast loan approval for housing loans, but only if you meet their conditions in full and are eligible.

Here are some tips to get a fast loan approval from housing loans.

Fix Your Credit Score

Make sure you have a solid credit score before submitting your application for a house loan. This seemingly insignificant amount will make or break your application because it demonstrates to lenders your borrowing responsibility.

Pay off all of your debts, including credit card bills and overdue loans, to repair your credit history. Even if you believe that you have paid off all of your outstanding bills, you should still double-check that all of your records are accurate. Examine your credit reports, and if you discover any errors, submit a complaint to the Credit Information Corporation.

Get Advice from a Mortgage Broker

Looking to fast loan approval of your housing loan? Think about collaborating with a mortgage brokerage firm. Mortgage brokers are experts that provide knowledgeable financial guidance to homebuyers. They also make buying a home much easier by assisting you with the paperwork preparation and removing the need for you to contact other banks.

One of the main advantages of using a mortgage broker is that they may connect you with a bank that provides competitive home loan rates. A variety of home loan choices may be available to you thanks to its agreements with banks.

Read Also: What is Mortgage

Don’t Increase Your Debt-to-Income Ratio

Avoid getting a new credit card or making significant expenses like getting a new car in the year before you apply for a loan. It’s a sign that you’re about to increase your debt load. And it can be one of the causes for your inability to make timely monthly amortization payments. Don’t buy anything that will raise your debt-to-income ratio, either. Simply said, you must take care to avoid any actions or purchases that will increase your already high financial obligations. The bank receives a warning if you take any steps that raise the risk in your financial portfolio. If they don’t believe you can afford the monthly amortization, they may reject your application for a home loan.

Maintain a Steady Source of Income

Banks seek candidates who have the resources to pay back their loans. Because of this, they will only accept applicants who have maintained employment. Resigning in the middle of applying for a home loan may not be a smart move because it will appear to the bank that you have recently lost a source of income, which is plainly important for repaying the loan.

Never make a loan application before making a career change. Your ability to make on-time monthly amortization payments is indicated by a solid career and fixed income.

Choose a Property You Can Afford

When looking for a property, it’s important to keep your expectations realistic and practical. By claiming that you can still receive a bank loan, for instance, real estate agents may persuade you to investigate condo apartments in a key business center that are possibly more expensive or outside of your price range. It’s crucial to remain realistic and limit your inquiry to properties that fall within your price range. If not, it would ultimately cause more financial loss. Furthermore, choosing properties that require you to obtain a home loan you can afford will increase your chances of being accepted as compared to selecting properties with significantly high price tags.

Keep Your Required Documents Updated

In order to ensure that its borrowers are actual persons with a genuine need to borrow money for a home purchase, banks are very strict when screening loan applications. As a result, all of the documentation and requirements for a home loan that you present to them should be correct, updated, and consistent. Your application will be rejected if you make even the slightest error. You shouldn’t worry, though, because banks typically offer applicants some time to fix any mistakes in their records.

Keep Your Communication Lines Open

All of your requirements have been submitted. You have a clean credit history. You also have a secure job on top of all that. The outcome is all you are anticipating. Try not to miss any bank updates by keeping your lines open and being informed. Any delay in your response could affect getting a fast loan approval, so please return every call from the bank representative.

In a nutshell, banks are undoubtedly among your best options for home loans due to their competitive interest rates and flexible terms. Don’t be quickly discouraged if your application is denied. There may be time allotted for you to make minor application corrections. In any event, you should consider it a challenge to raise your credit score and maintain a stable financial situation in order to get a fast loan approval in your home loan application.

Lastly, if you and your family have decided to make your dream home into reality, but your budget is not enough to cover the full cost and you need a loan using a Bank Housing loan, BRIA Homes is the answer to your problem. BRIA Homes is a subsidiary of GOLDEN MV Holdings, Inc., .one of the largest real estate companies in the country. BRIA Homes is primed to bring quality and affordable house and lot packages and condominium units closer to ordinary Filipino families. This is the goal that drives every single employee in the company, for which the ultimate fulfillment is seeing a client happily moving into BRIA’s homes.

Written by Alfred Alaba