As you might imagine, you can’t just walk up to a loan agent and ask for a $500,000 home loan without preparing anything. (Well, you could, but they’d probably laugh at you) There are a number of things you need to prepare before doing so.
In this article, we’ll go through some of the basic needs that you must prepare when applying for a home loan. Read on to find out what they are!
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A home loan requires you to prove that you earn enough money to pay off the loan over time. The lender needs to be sure that you can handle the financial burden of weekly or monthly repayments that they have set up.
Typically, you will need to provide your two most recent payslips, at least two years’ worth of tax returns, and a bank statement from your primary bank account. (The account that you will link the deposit and repayments to) Take note that some loaning offices do require even more financial proof, so be sure to check the specific requirements you need before proceeding.
Double Check with a Mortgage Calculator
Mortgage calculators allow you to check the expected level of repayments you will need to make for specific loans. Once you input the total loan amount, initial deposit, and the number of years you intend to spend repaying it, the mortgage calculator will show you an estimate of how much you will need to pay back each week or month.
This is a useful tool for determining just how much you can borrow without breaking the bank and spending more than your savings will allow. Make sure to aim for a balance that comes to slightly less than your savings, so that you are also able to save up a small amount for backup needs.
Happy house hunting!
Also visit https://www.roshi.sg/personal-loans/ for more!