Financing Your First Home: Four Ways To Obtain A Loan

Buying a house is something you cannot quickly decide on. It involves a lot of thinking and consideration. Are you ready to be a homeowner? Is your credit score good enough? How financially capable are you? These are just some of the basic questions every homebuyer usually asks. After all, you have to be very well prepared as home purchase entails big financial responsibility.

How To Obtain A Loan For Your House

One of the significant phases in homebuying is to gather the finances. Once you have

determined what type of residence to buy and where to buy it, as soon as you have taken

care of your credits and readied all the necessary documents, unless you were born with a

silver spoon in your mouth, your next step is to find a loan provider.

Regardless if you are eyeing to purchase a certain property for sale in the

Philippines or a condominium unit in the United States, here are some of the

popular ways to obtain a housing loan.

1. Banks. Majority of the banks, if not all, offer home loans to its account holders. They have step-by-step guides on how to qualify. Some have mortgage affordability calculators so you’ll know the maximum amount you can borrow based on your income and existing monetary commitments. Some provide different packages with customizable rates that are uniquely suited based on your needs.

2. Mortgage lenders. There are house builders and real estate agencies that have their own lending services so that it is easier for them to get a sale done. And then there are also credit unions, internet lenders, independent brokers and financial institutions that can assist you with your needs. Which ever lender you choose, make a background check of its reputation so you’ll be guaranteed that you are in good hands. Compare its interest rate against the ones in the industry and find out if there are additional costs like application fees for example.

3. Seller of the property. Seller financing is not a new concept. There are instances when the buyer will be required to settle with a down payment and then make installments monthly (interest included) over a certain number of years until the sales price is fully paid.

4. Government programs. Depending on the country where you are at, the local government has various options so that its residents can acquire different loans ranging from housing, car to salary types. Here in the Philippines for instance, we have SSS, GSIS and Pag-Ibig Fund.