Crucial Questions Need to Be Asked When Applying for a Home Loan
Home loan application is an emotional roller coaster to some. Mixed Excitement, anticipation, anxiety, and fear of being rejected—all these feelings can be very overwhelming which may affect your focus and may forget to clarify and ask the crucial questions you may need to ask.
Know all the answers to these questions before finally jumping to sign that deal:
- “What are the possible requirements to apply for a home loan?”
Your employment income, cash flow, credit history and, assets, and liabilities, will determine whether you are eligible for the loan or not.
- “What loan type should I get?”
You will get a higher chance of approval if you apply for the best-suit loan that meets your need.
- “How would I know if this loan suits my needs?”
Make sure that the loan you applied for is meet your needs and suits your budget well.
Repayment terms and Rates of loan
- “Is it necessary to give down payment?”
Most home loans require paying a certain percentage of the total loan amount as a down payment.
- “What is a payment term?”
Payment terms refer to the cost and duration of your monthly payments up until full payment. Longer payment terms mean lower monthly repayments but the interest rates would be higher.
Home loan mode of Payment
- “How can I pay my home loan?”
Loan payments typically can be through auto-debit payment arrangements, issuance of post-dated checks, or over-the-counter payments channels. You may choose the most convenient on your part.
- “Can I change my chosen mode of payment?”
Ask if shifting from one payment mode to other payment channels during the loan duration is possible.
This set of questions are needed to be asked to your lenders before signing a loan. O better yet, find a lender that will assist and explain things further to give you full knowledge of what you are up to.