Top tips for getting your home loan approved

*collaborative post*

Buying a new house is probably the biggest financial commitment you will ever go through, therefore you may need a home loan or mortgage to help you out. Home loans are easily accessible no matter where you live in the world, especially in China. But there are a number of things that you need to do in order for your loan to get approved. So here are the top tips for getting your home loan approved.

Know how much you can afford

A great tip when it comes to buying a new house is understanding how much you can afford to pay for a house. Once you know how much you are willing to pay for a new house, you need to take your savings into account and set yourself a budget. In doing this you will be able to determine how much money you need to borrow from your lender and how much you will have to repay each month. If you go to your lender with an unrealistic figure, they will more than likely decline your application. Therefore, you need to make sure that you know how much you can afford to repay each month in order for your lender to set a realistic loan.

Do your research

Before applying for a home loan or mortgage, make sure that you have done your research and that you are aware of the terms and conditions that come with having a loan. This is the time for you to research the different types of loans, rates and lenders that can help you. Being prepared and informed can greatly help you with your home loan application, as lenders are more likely to take you and your application seriously.

Understand how lenders operate

Following on from doing your research, another great tip for applying for a home loan is understanding how lenders work. Make sure you are aware of a lender’s requirements and conditions, as this will help to make your home loan application run smoother. There are a number of things that lenders require you to prove or submit, which will be explained in more detail soon. So being prepared for these will make your home loan experience much easier.

Check your credit score

Making sure your credit score is clean is an affective way of getting a home loan approved easily. Any home loan lender will go through a number of thorough credit checks to determine how creditworthy you are, as this can determine whether you are approved for a loan or not. Your credit score can be affected by a number of different things, for example how reliable are you at paying your bills each month or how much money you put on your credit card each month. When applying for a BOC home loan you must make sure that your credit score is clean. So, if you feel your credit score is not up to standards, you may want to spend some time building up good credit history before applying for a home loan.

Apply for a loan in principle

A home loan or mortgage in principle is an agreement from a lender stating that they will lend you a certain amount of money before you have finalised the purchase of your new house. Applying for a loan in principle will prove to lenders that you are serious about taking out this loan and that you are willing to make the repayments each month. It also proves that you have secure finances, which is desirable to any home loan lender.

Make sure your details are up to date

There is nothing that a home loan lender finds more annoying than out of date or invalid information. A lot of paperwork is involved when it comes to applying for a home loan, so make sure that all of your details are correct and up to date. Doing this will make the process of applying for a home loan much easier and quicker for both you and your lender, as any incorrect details can result in your application being delayed or even rejected.

Have evidence of your deposit

Another great tip for ensuring your home loan application is approved, is having evidence of your deposit. When buying a new house, you are often required to pay a deposit to the sellers, to show you are serious about purchasing their house. Proving that you have paid a deposit to a lender will greatly help in your home loan application and will help to get the ball rolling.

Hopefully with these few useful tips you will now know what it takes to have a successful loan application, and you’ll be one step closer to getting a home loan to help buy your new house.

 

 

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