We hope we can agree that a loan is good if it is cheap and we have already repaid it. ? To be serious, most complaints about loans do not come during repayment, but during borrowing.
Understandably, this is a more stressful situation by default, and we want to get over it very quickly. We’ve found our new property, but we can’t move in yet. If you follow these 3 tips, you are guaranteed not to complain about borrowing.
Little used credit pre-qualification
We mention it in almost all of our writings because it is an inevitable opportunity in our hands. Credit pre-qualification is one of our biggest help in getting borrowing smoothly.
It’s just that, at the moment the idea of buying a property comes up, we do a credit pre-qualification. We put all the important employer paperwork, proof of income in the bank, and the bankers do the certification. As a result, we will know exactly how creditworthy we are, that is, the amount of “ceiling” we can raise. In fact, we also know exactly what a property needs to be in terms of value and condition. This avoids the mistake of borrowing too much or that the property we found is not encumbered.
An added bonus is that this pre-qualification is stored by the banks for a period of time. In practice, this means that when we apply to the bank for specific borrowing, we no longer need to spend time on our financial investigation, only the real estate should be qualified. This gives us even more time.
Therefore, our first tip: Prepare your credit!
Another common topic on our site is the need for a full comparison
Even though an acquaintance of yours is working at X bank, there is quite a chance that they have the ideal loan for us (of course). Borrowing is a constrained process where it is almost impossible to accelerate the process if we were to reinforce this idea for that reason.
We recommend that you try this calculator and you will not believe it! Along with the same loan amount and maturity, the short-term (monthly repayment) and long-term (all repayable) discrepancies surprised us more than once. Who would like to pay $ 25,000 a month if he could get away with $ 50,000? If we have $ 75,000 for this loan project, then the difference is worth making $ 25,000 into a savings ( TBSZ account , home savings) and investing the money there.
Our second tip: Make a detailed comparison!
The downside of a sales contract
It happens very often that we slip into the finish line. In the case of borrowing this can also be a contract of sale . Banks will provide a specific list of exactly what data should be included in the contract and what form it should take. You need to be strong here, and the lawyer must be firmly made aware of this. Although many of these contracts are written, some banks may have unique requirements.
Third tip: Pay attention to the bank’s expectations
Well, to be honest, these were the three most important items that, if given due consideration, should not give us an unpleasant surprise when taking out a loan. Written like this, it seems simple, and luckily it’s not difficult in practice. We’ll be happy to help, so contact us! After we call you back, you are guaranteed to answer all your questions.