How to borrow money to buy a house so as not to be overwhelmed by debt is always the top concern of every family. Because our forefathers have a saying “Settle down and then lose your job”, buying a house is always the dream and goal of couples. But to buy a house requires a large amount of money, so a loan is always the first choice of many households. So how can you borrow money and pay interest on time?
3 pocket loan tips for you
Don’t borrow money when empty handed
According to information, banks usually support 70-80% of the capital to buy a house, so at least you need to have 20-30% of the money on hand. But many Vietnamese people borrow money to buy a house when they don’t have any money in hand and with the thought that they will pay gradually during their working time.
But this thinking is very wrong because according to the “golden ratio” of investors, you must have at least 30-40% of the house’s value in your hand to ensure daily living costs and expenses. avoid the situation of “profit mother, child gain”. If you have determined to borrow more than 50% of the value of the house, you must ensure that the total cost of paying bank interest does not account for more than 40% of your monthly income, that is the smart home loan policy.
Choose preferential policies for bank loans to buy houses
When you want to borrow money to buy a house , banks are always the first and best choice of many households, because many banks have preferential policies for citizens with jobs and stable incomes. Most banks today focus on interest rates combined with discount incentives of many projects co-operated between banks and investors, so it will help you reduce some of the debts that need to be paid.
Plan and check loan contracts carefully
Plan to adjust your income and the interest you need to pay to adjust your spending, when signing a home loan contract, you should pay attention to the maximum extent that your financial ability can spend. pay. Besides, you also have to regularly check the loan interest rate changes to better adjust the plan.
Why should you take note and plan? Because many people have fallen into high interest rates due to fluctuations, the percentage of interest payable to the bank is more than half or even double. Therefore, it is essential to carefully review the contract and loan policy of the bank to buy a house. Currently, many banks have contracts to pay interest and principal on a monthly and quarterly basis. Therefore, customers can choose a fixed payment method even though the home loan interest rate increases. That’s why you should have a financial plan to avoid losses due to fluctuating interest rates.
Necessary procedures in the bank loan policy to buy a house
- Application form for home loan (depending on the bank, there will be different forms).
- Notarized real estate purchase/sale contract.
- Types of identification documents such as: ID card/passport, household registration book or temporary residence certificate of the borrower and guarantor, marriage certificate or certificate of singleness.
- Notarized proof of income.
- Papers on your collateral (if any).
- Application form proving the purpose of using capital to buy a house.
The above are smart home loan tips to help you buy a home quickly and repay the most effective debt. You can refer to it to have better awareness when starting the work of building the dream of “settling down and settling down”.
Nhi Tran – AequitasAudit.com
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