House Loan Pitfalls To Avoid

Most people require a house loan Singapore to purchase a home. You must be cash rich indeed if you don’t require any form of home financing to make your home purchase. If you think that there is no way a bank will turn down your house loan application, think again. Home buyers often run into situations where banks can outright decline their applications. Losing out on the best bank housing loan around in the process.

These are some pointers that you should take note. They can save you thousands of dollars on your mortgage.

1) Being a guarantor for someone else’s home loan

A common way to face financial disaster is to sign on another person’s housing loan. You may become a savior to your relative or best friend by doing this. But if you are already a guarantor for a housing loan, it could be difficult to get one for yourself unless you have a high income. Because a mortgage loan is seen as a significant financial commitment, the lender will be concerned with whether you can afford another one with your current financial commitment.

2) Hiding material information

Sometimes, you may find that some particular information about you that you find embarrassing. This is especially when it is regarding your personal financial position. Remember that the housing loan agent or housing bank loan officer is there to help you obtain a suitable Singapore house loan. And all information required by them helps them to garner a good deal for you.

3) Outstanding credit bills

You personal credit record can affect how much a house loan Singapore lender is willing to be flexible with you. If your personal credit cards or car loan is already late in payment arrears, it does not reflect very good on your personal credit. It would be favorable to you if you are making prompt payments on your personal credit facilities.

4) Unaware that you can get a pre-approved home loan

Many home buyers are not aware that they can get a pre-approved Singapore home loan before they go out to look for a house. You don’t want a situation where you have paid a home deposit and thereafter being unable to obtain a mortgage loan to purchase your house. Once you get a pre-approved home loan, you will know a range of prices on houses that you can afford to buy.

5) Negligent on closing costs

Closing costs are incurred when you finally close a deal. They include legal fees, insurance, stamp duties, etc. Make a proper estimation of the payable cost before settling on a house loan. Different housing loans from different lenders can result in varying closing costs.

6) Supporting your home loan broker or housing bank loan officer

When additional documents are required, do submit them to the relevant people as soon as you can. They are helping you to get the best housing loan deals. They are on your side. If you delay the submission of documents, your application can go to the back of the queue on priority.

So keep these things in mind when going about seeking a good deal in the house loan Singapore market. You can also contact us for our services by clicking here.