How Mortgage Brokers Can Help You Secure a Home Loan
- By Moneymax
- July 7, 2020
The first few steps to buying your dream home can be the most difficult. With so much information you have to know and documents that need preparing, the process can definitely stress you out. You may even fall into traps that might hurt you and your pocket in the long run. Finding the best home loan that fits your needs and budget can also be frustrating, especially when there are many mortgage products in the market. You may spend hours browsing through mortgage deals, memorizing financial jargon, and still end up with nothing. However, there are professionals out there, such as mortgage brokers, that can make obtaining your dream home a little bit easier. What is a Mortgage Broker? A mortgage broker is a professional who gives financial advice to individuals wanting to purchase a home. He or she can guide you through all the complexities of a mortgage application. A mortgage broker can help you prepare the paperwork and documentation needed for your home loan application. As a middleman, a broker also connects borrowers to lenders, taking care of the steps that come with buying a home. Mortgage brokers partner with various lenders and have access to different home loans, which makes it easier to identify mortgages that best suit your financial needs. Read more: Should I Borrow Money from Private Lenders? The Benefits of Working with a Mortgage Broker Working with a mortgage broker has many benefits, including the following: They help you assess your financial health Before preparing your home loan application, it is best to check…
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How to Find the Best Housing Loan : A Step-by-Step Guide
- By Moneymax
- January 26, 2018
In a ZipMatch homeownership survey, 32% of young Filipino professionals said they were not sure about their financial capability to purchase a home. Also, four out of 10 respondents said they did not have ample savings even for a down payment. This shows how much Filipinos, especially millennials, need to be educated about their various options for financing a new home. A housing loan is one of them. Getting a loan from a bank or government institution can help you buy or build your dream home without blowing your budget and entire savings. But not all home loans will suit you. This is why it is crucial that you take steps that will enable you to choose the right housing loan. 1. Find Out How Much You Can Afford to Repay Being a responsible borrower means being self-aware of your financial situation. You do not want to find yourself in a messy situation where you’re struggling to pay your monthly amortizations just because of a wrong choice of loan. Worse, it could lead to foreclosure and losing your precious investment. So be proactive. Before you go hunting for the best housing loan and apply for one, be sure you know your financial capability. Do a reality check. How much money are you making? Do you have debt? If so, how does your debt stack up against your income? Ask yourself those important questions. In doing so, you can have a good estimate of the amount you can borrow and realistically pay. When you assess your financial capability, it is best…
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What You Need to Know for a Successful Housing Loan Application
- By Moneymax
- January 23, 2018
Are you planning to make a housing loan application? If yes, this article will help you understand the basic concepts related to the mortgage that you need to consider. The Monthly Payment For a housing loan, you must have sufficient income to get the loan approval. The monthly payment should be at most one-third of your income. Anything more than that makes your application process for a housing loan more difficult. Philippine banks generally do not approve loans that result in a monthly amortization of more than 30 percent of your monthly gross income. If you wish to know how much you are going to pay every month, an amortization schedule is recommended. It helps to save your time and free yourself from the hassles of computing the amount which varies with each payment. An amortization schedule is a table with the details of the amount of each payment allocated to the principal and interest. Early in the schedule, the majority of each periodic payment is the interest. After that, the majority of each periodic payment is put toward the principal. You can use an online amortization calculator to find out your monthly payment. Just provide the information regarding your total loan amount, interest rate, and payment terms. The Down Payment What is a down payment? It is the amount of money you pay upfront when purchasing a home. Your down payment influences the home price you can afford. Generally, the banks in the Philippines require at least 20% of the appraisal value of the property as a down payment. It is also a benchmark used…
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Things to Avoid When Applying for a Home Loan
- By Moneymax
- August 17, 2013
Buying a house is one of the biggest decisions one can make. Having devoted plenty of energy and time for our down payment, researching and applying for a home loan begins. Despite this, there are still many real-life examples of home loan applications being rejected even when borrowers have the ability to pay for the down payments. Here, we list the things one should avoid when applying for a home loan. Read More: Are You Ready to Buy a House? What Should You Avoid When Applying for a Home Loan? If you have found your dream house and a home loan is the only thing stopping you from getting it, here are some important dont’s when you are going to apply for a home loan: Don’t change your job before applying for a home loan. A stable career with a fixed income indicates your ability to pay the monthly amortization on time. Don’t apply for new credit cards. It is a hint that you are going to take on more debt in the coming days. It may be one of the reasons that you can’t pay your monthly amortization on time. Don’t make any purchases that will increase your debt-to-income ratio. In short, you need to make sure that you do not engage in any activities or purchases that add to your existing financial burdens. Any actions that increase the risk of your financial portfolio send an alarming signal for the bank. They may reject your application for a home loan if they are not convinced that you have the ability to…
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What You Should Watch Out for When Applying for a Housing Loan
- By Moneymax
- August 11, 2013
Before the house-hunting begins, it is good to know your affordability and eligibility for the housing loans in The Philippines. When it comes to housing loans, one of our main concerns is to find out which banks offer the most reasonable and affordable interest rates. However, there are many criteria that should be given the utmost consideration since the house-purchasing is one of the biggest decisions we make in our life. Don’t be lured by the low interest rate of a housing loan, there’s no such thing as a free lunch, and a good lunch is not going to be cheap! What Are Your Concerns When Applying For A Housing Loan If you are ready to purchase a house, let’s see what you need to watch out to apply for a housing loan. 1. The Monthly Payment When applying for a housing loan, you must not only have income but have a sufficient one to get the loan approval. The monthly payment should be at most one-third of your income and anything more than that makes your application process for a housing loan more difficult. Philippine banks generally do not approve loans that result in a monthly amortization of more than 30 percent of your monthly gross income. If you wish to know how much you are going to pay every month, an amortization schedule is recommended to save your time and free yourself from the hassles of computing the amount which varies with each payment. An amortization schedule is a table with the details of the amount of each payment…
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UnionBank Auto Loans
- By Moneymax
- July 9, 2013
For those who’d like the convenience and comfort of having their own vehicle but have a dilemma in the payment process, the UnionBank Auto Loans can offer a hand. Attractive Features of the Loans The UnionBank Auto Loans offer financing for brand-new vehicles as well as used vehicles. The minimum down-payment rates for brand-new vehicles and used vehicles are respectively 20% and 30% of the loan amount. At the same time, the minimum loan amount starts at P200,000 while the maximum auto loan amount is up to 80% of the selling price of the vehicles. Borrowers can enjoy the flexible loan payment terms of UnionBank Auto Loans. The payment options are 12, 18, 24, 36 and 48 monthly terms if you will buy a used car. Those who plan to buy new cars can also benefit from the payment options, and they are given additional choice of 60 monthly payment terms. How Can I Make My Payments? There are three modes of payments available for the UnionBank Auto Loans borrowers. They can choose to pay their monthly amortization loans over the counter at any UnionBank branches or by issuing post-dated checks to UnionBank. A third option is the Auto Debit Arrangement (ADA) facility, borrowers simply have to nominate their accounts as well as specify the amount and schedule of payments. On a monthly basis, the payments will automatically be deducted from their UnionBank savings or checking accounts. The Interest Rates The interest rates of UnionBank Auto Loans differ according to the purposes of loans (for new vehicles/used vehicles purchases) as well…
