Vietnamese people have always had the concept of “settling down and then getting lost”. Therefore, having a house is always the desire of many people, especially couples who have established a career in urban areas. In recent years, buying a house with installment payments has become more and more popular in Vietnam. This form of installment purchase is being chosen by many families because of its convenience. But besides the advantages, homebuyers in this form need to have a certain understanding, the necessary notes to avoid the unworthy scene.
Points to keep in mind when deciding on a home loan
Know your financial ability and your family
When you intend to buy a home, you need to know your financial capabilities. Financial capacity will include self-sufficient savings, support from relatives and monthly income after deducting all living expenses for the month . At the same time, investors, homebuyers and families need to increase their income from secondary sources to ensure that even if the interest rate increases, they can also pay off the principal and interest. When you intend to borrow money to buy a house, don’t borrow a large amount of money to buy a house that is too big for the glamour. It is necessary to consider the suitability of members and the purpose of use for the whole family to choose the house that best suits the needs of daily living. Avoid unnecessary waste.
Understanding bank loans to buy a house
- First, it should be noted about choosing a bank loan period. Interest rates on home loans with installments over 5 years are the same. Therefore, you should choose the longest loan period possible to reduce the monthly principal amount to the lowest.
- Note the terms of interest rate penalties for early repayment. Normally, when taking out a home loan, up to 80% of customers usually pay off the loan in the first 5 years, so they are often penalized for prepayment. This amount is little attention paid by homebuyers and a rather heavy penalty of 1-3% on the amount of early repayment. Once a bank offers a low interest rate, they often come with a high penalty to cover the initial preferential interest rate loss.
- Buy home insurance. This is very important, especially in the situation that you are taking a bank loan to ensure unexpected risks in real estate. The insurance premium is relatively low, about 0.14%.
Smart selection of capable investors, good projects
This is a pretty important factor to keep in mind when buying a home on installments to quality when you decide to buy a home on installments. There have been many cases of not understanding investors carefully when buying a house on installments, leading to poor house quality, slow completion of construction, house rents doubling… Therefore, finding an investor Reputation is essential. This is reflected in industry experience, delivery time, quality of projects, customer reviews, and current business situation.
Besides the capable investor, it is necessary to evaluate the quality of the project you want to buy a house. The investor must fully own the apartment, the apartment has not been transferred, pledged and not on the list of planning without compensation of the state. This information customers can go to the local government to confirm to avoid crying or laughing when encountering a project that has been revoked, has not been licensed, is located in a clearing area or is involved in a dispute…
Carefully check the information in the home loan contract
Before signing the decision in the home purchase contract, you need to carefully check all the information from the beginning to the end of the contract. Regarding the total value of the home, the specific payment period to avoid incurring invisible fees and the time to pay is within your financial control.
You can also proactively propose to request additional correction of some information that you think is not suitable for the buyer’s interests. It is possible to ask the investor to support a part of general costs such as apartment management fees, repair fees and interior procurement. It is advisable to consult a lawyer with the information stated in the contract and should not deposit money before the two sides negotiate.
Make a specific financial plan to repay the loan after the loan
Debt makes you more tired, but it also motivates you to try harder at work. It helps you to work non-stop, thereby reaping unexpected successes. After buying a house, you and your family need to make a reasonable financial plan for living expenses to be able to repay the debt on time. Avoid the situation that the debt period is overdue, so that the mother’s interest is the child’s interest.
Buying a home on installment is really a perfect option for families who currently do not have enough money. But before deciding to buy, it is necessary to understand the notes when buying a home with installment payments to have enough information and understanding to buy a house as desired by the family.
Nhung Nguyen – AequitasAudit.com
- If you don’t have a mortgage, you can buy a house on installments in Ho Chi Minh City
- The latest conditions for buying a house in Ho Chi Minh City in 2018