Getting The Best Home Loan – A Step by Step Procedure

June 24, 2013

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Written by imoney

In this section, we are here to educate you on how you can you can pick out the best home loan by a series of steps.

Step 1. Educate yourself with the basics.

This may be a simple step but people often neglect to know the technicalities of getting a home loan. Without the technical knowledge you may be even misled on how the banks represent a home loan product, so educate yourself with the basics. You can check our articles Part 1 and Part 2 of the Things You Should know about Home Loans that deals primarily with what are a borrower’s options and qualifications.

Step 2. Assess the amount you need to borrow and when to pay for it in Full

So you know now the qualifications in getting a home loan, next thing is that you have to assess how much you need to borrow and when will can you pay it for full. In short, your terms.

Step 3. Know your options to know the best home loan

Search the internet or local banks for what they offer the interest rates, which one would meet your budget and which one would fit your profile. In short, find the best home loan that best fits you.

Note: Never be deceived by Home Loan Promos, this promos usually have a very low interest rate for the first year but is subject to interest rate changes after that year which usually equates to a higher amortization.

Step 4. Negotiate the Home Loan Interest Rate

So you found the smallest interest rate in one bank and you are ready to go for it but the most mistake people make is that they don’t know that they can haggle for the interest rate. Let me remind you that it is possible!

Quick tip: Always have 3-4 options and haggle the interest rate, you will be surprised that your last option may be the one you would pick.

Buying a house is a real tough job especially if it is your first time doing it. This requires a big amount of time and money so it is OK to take your time and know your options. Fortunately, iMoney Philippines has done the work for you with our mortgage loan comparison chart.