What You Should Do Before Getting a Mortgage
People who have previously been confused about buying a house have now realised that they need to act as soon as possible because the mortgage rates are rising each day. If they don’t make a move now, they might have to pay more each month.
However, the entire buying process isn’t that easy. For actually buying a house you need to find a property that caters to your needs without bankrupting you. The chances of finding a mortgage deal that favours you aren’t that difficult if you pre-plan everything.
If you are looking to buy a new house and applying for a mortgage, then here are some things that you must do before getting a mortgage:
Before you apply for a mortgage loan, there are certain things that you need to include in the standard package. These usually include payslips of the listed buyer of the last month at least, tax filings of up to the last two years, bank account statement for the last three months and documentation of unusual withdraws or deposits (if any).
Not knowing how much you can potentially spend, can harm you in the longer run. In Singapore, lenders have to follow the Total Debt Servicing Ratio (TDSR) guidelines set by the MAS.
Know your market
Sometimes, the type of mortgage that you can get is dependent on the market. For instance, when interest rates are going up, you may want to consider fixed interest rates even though it may be slightly higher than a variable rates package.
Improve your credit
First of all, not many people actually know their credit. Borrowers can get a copy of their personal credit report at Singapore Credit Bureau. Firstly, make sure there is no mistake or dispute on the credit report. Secondly, pay off any existing balance if you can if it helps you to increase the loan amount.
Just a little side note, if you are planning to apply for a mortgage, avoid making any big purchases. If you aren’t sure about the rates, you can always compare mortgage loan rates in singapore, with the help of a vendor or market survey.