3 things to consider for making housing loan

Buying a home can be a nerve racking and exciting experience for first-time buyers or experienced
investors. It all depends on how knowledgeable and well equipped you are to handle the process. Good
insight will reduce the chance of home loan application mistakes so you can rest easy.

Whether you’re single, newly married or have a growing family, it’s vital that you know these principles to
get the best out of your home loan application. To improve your chances of smooth sailing, here are three
things that you need to consider when applying for a home loan.

1. Use expert advice

The chances are good that your friends or relatives are genuinely thinking about your best interests when
they share advice on where you should apply for a home loan. Their ideas are almost always based on
how things turned out for them when they applied for one. You may take good note of their tips and ideas,
but it would be best to consult with experts which will further help you arrive at a good decision on where
to apply for a home loan.

A bank assesses each person individually, so each application for a loan is different. In fact, it shouldn’t
be surprising if you receive a different offer from the bank than your friend did.

It’s advisable to always ask advice from a trustworthy professional who understands the industry.

2. Accurately declare your finances

Banks do a thorough background check on their applicants so they can mitigate risks. They usually share
information with other banks to find out whether the information that the applicant has shared with them
can be trusted.

If banks find discrepancies between the information that an applicant has shared with them and what the
other banks are declaring about the applicant, the bank will usually collect or recollect the information until
they obtain the facts.

3. Assess your financial capability

Accurately crunching the numbers of your financial capacity is essential. Set aside the emotion from your
decision by sitting down with an Excel spreadsheet and drawing up a realistic budget of your monthly
income versus expenses. This will paint a clearer picture of what your current spending capacity is.

Then, look ahead to what income and expenses you expect over the coming years (covering the term of
your loan). In your projections, include the monthly loan repayments that will be due. Are your expenses
going to change? Are any big vacations or family circumstances expected? Any year-end bonuses or a
change in your employment? Of course, don’t forget about the cost of maintenance and upkeep. Take
into consideration all those lifestyle factors into your budget so you can accurately assess the amount you
comfortably have to work with.

To get more information on BDO Home Loan and how to apply,

visithttps://www.bdo.com.ph/personal/loans/home-loan