A housing loan is one of the biggest loans you will borrow in your life and it should be taken care of with due diligence. By finding out which lenders can offer you the best housing loan rates in Singapore, you can save a lot on the interests incurred. However, another concern by many borrowers will be how can they get their home loans approved quickly. Depending on your credentials, getting a housing loan can be a fast or tough process. Here are some ways that can help you obtain a housing loan quickly:
It only takes a few minutes to pull out your credit report online and find out what your credit score is. However, many home buyers do not find out what their credit history is prior to applying for a housing loan as they assume that their credit score is high enough to qualify for a housing loan. It is not wise to make such assumptions as you may be unaware of certain events that have brought down your credit score and this can slow down the process. Identity theft, credit frauds as well as low credit scores can easily stop your loan application.
Your credit activity and credit scores have a big impact on housing loan approvals as majority of the housing loan lenders require a high credit score for approval.
There are some other factors that can stop mortgage approvals such as derogatory credit information, habitual lateness, and frequent missed payment. You need to lower your debts, pay your bills on time and try to stay on top of the credit report. Fixing credit report errors and cleaning up your credit history will help you keep up a high credit score.
A mortgage loan also involves legal fees, home valuation and other expenses. You should prepare extra cash on your hands to ensure you can make these payments whenever required for a smooth loan process.
It is crucial that you stay employed while you are going through all the processes for buying a house. Your income status or changes to your employment can delay your mortgage process or even can stop it. The lenders or banks approve a housing loan based on the application and other related information. If you quit your job, the lender will reevaluate your financial status and eligibility for the loan.
Do not incur new debts
It is uncommon that you will have a zero balance on your credit cards. However, it is better if you owe less to your creditors to qualify for a mortgage loan. In fact, your debt will determine if you would get a housing loan approval and the amount you can get from a lender.
To prevent any disappointments, you should improve your finances and credit score. It is not impossible to rise above bankruptcy, repossession, and of course, credit problems. Just make sure you stick to your plan and work for it.