7 Tips You Should Know Before Getting A Home Buying Loan

1. It is important to note that the benefits that are marketed and advertised are fixed for a short period at the beginning of the loan only. After you have set the variable interest rate that consists of the basic interest group with the additional interest rate applied after the initial period, you can make a balanced decision. Your financial assessment and housing choice should be based on the interest rate extended throughout the loan period, not the minimum interest that covers the short initial period.

2. The “loan amount to value ratio” is a banking term used by lenders to determine the appropriate loan ratio for the value of the housing to be chosen. You may tend to choose the highest loan-to-value ratio, but it’s best to make a big down payment with a low loan-to-value ratio. This option will save you more money for unexpected and unexpected situations. This method also helps you make the loan seem like a self-financing project through the income of the leasing process that will pay the monthly installments. This will also give you the flexibility to convert your loan to another bank if they offer interest rates lower than the interest rate applied to your current loan.

3. The house of your dreams is important, but its location is more important. Therefore, the first rule in the real estate world is the location, then the location, and then the site, and here you have to take into account many factors, such as the developer and residential neighborhood and surrounding areas, as well as the distance from shops, schools and parks, as these factors It will not only be the key to your life, it will have a big impact on the price of your home if you want to sell or lease it in the future.

4. The short repayment period leads to a lower total interest payment. When you buy your home, the repayment period of your financial obligations is not extended unnecessarily by increasing the duration of the mortgage. Lengthening the duration may reduce your premium and entitle you to a larger loan amount, but you will end up paying more for it, so the price of owning your home becomes more expensive over the long term. The 20-year housing loan is 20 percent cheaper than the 25-year period, and the 15-year housing loan is 77 percent cheaper in terms of interest paid.

5. The memorandum of understanding is a comprehensive document clarifying the rights and obligations of the seller and the buyer. This memorandum should be clear and clear regarding the real estate broker’s entitlements, government facilities, real estate developer and the lender respectively. The MOU also prescribes an appropriate time frame for termination of the transaction, especially when the seller has a mortgage, and the buyer completes the transaction through financing. The Memorandum also protects buyer’s rights if the estimated value is lower than the agreed sale price or if the mortgage is not approved for any reason.

6. In addition to the down payment, which may range between 15 and 20%, there are a number of expenses that the buyer must pay. These payments are generally classified as fees paid to the bank, the property developer, the legislative or regulatory authorities, or the real estate agent. A person who buys a real estate property usually has to monitor 10% of the value of the property.

7. A real estate appraisal must be obtained from an accredited resident at the bank. The amount of the financing will be calculated by the lender based on the valuation provided by the evaluation agency. In some cases, the valuation may be lower than the selling price, which means less funding and a high introductory fee. To avoid similar situations, a special clause should be included in the memorandum of understanding to minimize the impact of this situation and to protect the buyer from loss of the underlying deposit, The buyer receives the expected financing value.

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