Purchasing a house, thru a termed housing loan, is a great form of investment which can give you huge returns in the future. Hence, if you intend to avail of the affordable home loans in Western Australia (WA), read the guidelines here.
2. In real property investment, you need to have careful and thorough
financial planning. If owning a residential unit is one for your short-term
goals, you need to assess first whether you are capable of paying the
required amount. If you have sufficient cash, pay in cash so you can do
away with interests; if not, apply for a home loan in any of the local
financial institutions in your area.
For more details on how to go about your loan application, read on
below.
IMPROVE YOUR CREDIT RECORD. If you have outstanding loans,
be prompt in your payments, particularly over the installment
months leading to your loan application. Remember, every count
of delinquency will affect your credit line record. Take note,
however, that it will take nearly a year to improve your credit
record. More importantly, an unused account won’t make any
good to your credit record; thus, the technique is to apply for a
loan, pay the amount as it falls due, and then repeat.
PRIORITIZE YOUR INTERESTS. If you believe a number of financial
obligations will likely arise in time, get a housing loan early on.
Filing various credit applications prior to filing a housing loan can
create a negative impact on the latter loan. Banks and financial
firms are relatively strict in terms 0f multiple credit application. In
fact, they have professional underwriters responsible in reviewing
loan papers; if they notice that you have more than one
applications, they might doubt your capacity to pay.
COVER THE DOWN PAYMENT. Make sure you have sufficient
amount to pay for the down payment. These days, you can get a
housing mortgage for as much as 90% of the home value, either a
two-storey or a one-storey home. If you can put up bigger down
payment, the better; that means you will have more equity. The
bigger the equity, the lesser the risk on the part of the borrower.
SMALL AREA IS BETTER. If you haven’t availed of any loan before,
the best way to do it is to think small. In other words, choose a
relatively lower installment payment plan, either on a monthly or
3. quarterly basis. Remember, lending firms do avoid giving their
clients the so-called “payment shock,” especially for newcomers.
Thus, the smaller the home loan, the better. What is important is
you are able to cover your obligations as they fall due.
SECURE LOAN PRE-APPROVAL. This means you should prequalify
in your loan application. At the onset, the lending firm will conduct
credit check which includes income verification and credit review.
Once you get a pre-approval, then you are good to go.
Lastly, you may look for mortgage brokers in your place and ask them
how to apply for mortgage loans. Other than banks and cooperatives,
there are small financial companies that offer housing loan with minimal
interest rate. Just make sure you end up dealing with a reliable financial
firm.