Simple Ways To Get A Better Housing Loan Deal

Simple Ways to Get a Better Housing Loan Deal

It’s always about how much can you afford. The question is especially vital to first-time home buyers. Because in buying property—as with any other big purchase—budget remains a constant issue. 

After all, not all of us have enough shekels to buy acres of space and mansions and huge driveways. And a good property and affordable mortgage doesn’t often come hand-in-hand. It would be great if they did, really. But that’s rarely the case. Sometimes a mortgage at a good price is in a bad location or the other way around.

That doesn’t mean there aren’t any great housing loan deals out there. You just have to scour for them pretty hard to find one you like.

For a better time at it, here are a few simple ways you could follow to get a better housing loan deal:

Make Sure You Have a Good Credit Standing

The only key in keeping a good credit standing is to settle all your bills on time. Every missed due date could affect and possibly lower your credit score. To get the kind of housing loan you want—this also works for personal and auto loans—maintain a good credit score.

Credit capacity is also an important part of credit scoring. So try not to close accounts even if you have settled everything because this adds points to your credit score.

Always Go for Achievable Plans

Look for a home that fits your budget. Yes, 4-storey homes or fountains or colossal gardens would look good. But they will only force you to pay the mortgage through your nose. It’ll be easier for you to apply for a housing loan if you know how to balance your budget and need.

Prioritise Housing Mortgage

As much as possible, avoid adding new accounts. New accounts mean new debts. Also, new accounts are sometimes questioned when you apply for a housing loan. Some housing loan underwriters may interrogate you to check if you’re capable and responsible in handling your bills.

Also refrain from big and unnecessary purchases when you apply for a loan. It is, after all, bound to create the wrong impression. You don’t want them thinking you don’t really need a loan at all simply because you can still spurge on expensive items.

Explore Different Rates

Mortgage rates differ depending on the lender. If you’ve been loyal to one bank for a long time, you'd probably get the best rates from them. However, there’s nothing wrong with looking at other options. A housing loan broker that has connections with different lenders may help you find the best rate. However, a lender doesn’t always cover the overhead of your housing loan broker.

Wait Until Interest Rates Decrease

When interest rates fluctuate, there’s a big chance of getting a good housing loan deal. Interest rates are really unpredictable—depending on the economic situation as well as other underlying factors. But always remember that periods of low interest rates could reflect increased home prices most of the time.

If you try to look closely at these pointers, a basic pattern can actually be drawn. To achieve a good housing deal, pay on time, deal with your debts, and get what you can only afford. All these would help you maintain a good financial standing. This is what most banks really look at. From that piece of information alone, a lender could tell if you are disciplined in how you handle your money—or not.

Don’t hide anything if you want to get a good housing deal. Be open with the bank: don’t lie about your financial situation. Better to have your application denied than deal with a mortgage that could potentially land you in debt-land.

And lastly, don’t hesitate to ask your lender anything you don’t understand about the loan process. It’ll save you on lots of worry if you just come out and ask instead of just reading through the contract until your eyes cross because you can’t make heads or tails of the details. This is especially true for first-time home buyers. Knowing more and understanding make it less likely that you’ll be cheated and fall for a bad housing deal in the future.

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This article is exclusively written for http://www.klpropshop.com by CompareHero.my. The Malaysia’s  leading comparison portal for housing loans which helps consumers in making informed choices and getting the best rates today. Please do check our website to learn more.