To buy or not to buy ?
Pause for a moment and think. What would be the biggest and most important decision you need to make in your lifetime? To some is choosing a good university, finding the right career path, the perfect marriage partner or perhaps is just choosing a family car. For most people, finding the property at the right location where one can settle down comfortably at an affordable price could be a major decision for them.
Then the list of questions and concerns will follow, pondering over our minds. Which is a good location ? Is it the right time to buy ? How can I finance and own a home? What if I need to renovate the house? What happens if I am not able to continue paying the loan?
Sounds too familiar? Not to fear.
It can be discouraging to get rejected when it comes to job applications, hence loan applications are no different. You’ll be waiting, hoping, and praying that your loan will be approved and if it doesn’t happen, you may lose heart and give up hope.
So to minimise your chances of being a loan-reject, your application needs to be a solid one. But how exactly do banks measure your financial status? What do they look for when it comes to approving loans? Here are the four main areas of eligibility to focus on when reviewing financing applications:
- Income level
- Repayment behaviour
- Individual risk profile
- Personal Debt Servicing Ratio
After determining your loan eligibility, you can now have a piece of mind to go hunting for a practical and affordable home, or even a home of your dreams.