10 Home Loan Tips

Obtaining loans for housing is a difficult and complicated process. When it comes to banks, many concepts are difficult to understand. These concepts are an important part of your loan repayment plan. However, remember that there are some questions you should ask yourself, not just the banks, when looking for housing loans.

If you are looking for housing loan advice, by reading this article you will have designed everything you need to ask yourself and your bank.

Calculate Approximate Credits

Calculate Approximate Credits

If you call home without performing a budget analysis, then you may be disappointed. You can calculate how much credit you can get from the bank by considering the salary you have earned. The maximum amount of credit that the bank will give you may occur with monthly payments equal to half of your salary. You can calculate the total credit amount based on your preferred refund period. For example, if your income is 5000TL per month, the maximum monthly payment of the loan will be around 2500TL.

Evaluate the Budget you can allocate to Credit and Prepare Payment Plan

Payment Plan

Remember that when you make loan payments, there will be household expenses and other daily expenses. Connecting a significant portion of your income to a credit installment may have undesirable consequences in the long run. When determining the amount of credit you will receive, take into consideration all your expenses and determine the appropriate amount for your long-term repayments.

 

Learn Your Credit Rating

Credit Rating

It is a good idea to learn your credit rating before applying for a housing loan. Banks with low credit ratings are less likely to issue loans. Therefore, if you are considering obtaining a housing loan, you can try to increase your credit rating for 6 months or 1 year. This will increase the likelihood of a positive outcome of your application.

 

Evaluate the Number of People Working at Home

The number of people working at home will determine your repayment of the housing loan. If two or more salaries are entered into the house, you will be more likely to get out of the loan and make repayments easier.

 

Consider Monthly Savings in Credit Period

Consider Monthly Savings in Credit Period

When planning your budget, remember to save a certain portion of your salary for savings. For your urgent and unexpected needs, this kind of accumulation will be your lifeline. You may also need to allocate some money for healthcare expenses.

 

Evaluate Different Banks for Home Loan

Evaluate Different Banks for Home Loan

Take your time and take advantage of the options of all banks. You can choose your bank by considering conditions such as interest rate, expense package, and then ease of payment. Generally, applying for a loan from the bank from which you receive your salary can help you to benefit from discounts or campaigns.

 

See Loan Term Options

See Loan Term Options

The maturity options offered by banks can be confusing. The longer the term, the higher the amount you will pay back. So if you get a 10-year repayment mortgage, you pay more to the bank than a 5-year repayment mortgage. Therefore, very long terms may not be advantageous in terms of the amount paid back. Consider this when you plan.

 

Price Survey in Credit Life Insurance

Price Survey in Credit Life Insurance

Make sure you get the best price on the credit life insurance included in the expense package that banks offer. Since you do not have to take out credit life insurance from the bank, you can reduce your expenses with a different life insurance offer, especially in housing loans.  

Review Reconfiguration Options

Some banks offer restructuring options for housing loans. This option is used if there is an unwanted unemployment situation and credit payments fail. If you wish to apply for a loan with any adverse circumstances in mind, consider banks that have the option of restructuring. With the restructuring, you can create a new payment plan for the amount remaining until the debt you have already paid without any loss.

Plan B

You should always make a Plan B when you receive a mortgage. In case of illness or short unemployment, you should not interrupt your payments. It is therefore important that you develop an alternative payment plan for yourself.