Be sure to do several simulations and have some patience, as this is a process that may take a few months to complete.
1. Ask experienced professionals for help
Ask experienced professionals for help, they will help you collect the most advantageous offer for you. If you already have a bank loan, you can consult with that bank because, as a rule, there are significant advantages associated with getting a loan from a bank where the customer already has a track record. However, if you want to make sure you have made the best choice, seek advice from experienced professionals who will accompany you in the process by answering any questions that may arise and ensuring that you make the right choice.
2. Wait until you are 25
As a rule, being under 25 is a disadvantage when it comes to finding the best credit solutions. This is because normally those in their early twenties have just started working, which implies professional instability, a lack of credit history and a smaller salary. The bank will consider that there is a higher risk in lending to someone under 25. So if you are looking for a credit at a desirable price you may have nothing to lose by waiting 1 or 2 years.
3. Put 2 holders on your credit application
Having more than one holder in your credit application makes the financial institution feel more comfortable with the loan and the risk is more diluted in this situation. For example, if one of the holders becomes unemployed, the second holder can ensure the payment of monthly benefits, avoiding default. In other words, the banking institution feels safer and offers you more advantageous conditions.
4. Save on life insurance
Any home loan usually requires the client to take out life insurance. Normally, the bank suggests to you to do the same in your own institution, but this is not always the most economical option. Research other options and make sure what your bank is proposing is really the best one. If it is more advantageous, you can transfer your life insurance to another insurer and save some money.
5. Deliver significant initial input
Did you know that the entry value can greatly influence the conditions of access to credit? If you are willing to make a more robust initial down payment, you can get cheaper credit and generally better terms. If you have not yet been able to save enough to give the down payment you want, you can always consider waiting some time to increase your savings so that you can better meet your credit request.
6. Never let your balance reach negative values.
For the purpose of earning credit, it is never favorable to be a person who often leaves your account on negative terrain. Banks look at this to see if you are a good payer or not. Always try to have a positive account balance to demonstrate to the financial institution that you are a constant customer and that you will not be in debt beyond your means. This way you can get much more affordable credit proposals.
7. Prioritize Credit APR
Ultimately, give priority to the APR – the annual effective annual charge rate – to make your decision. Indicators such as spread, for example, are also relevant. However, these indicators do not include the costs involved in the whole process as opposed to the APR. Generally speaking, the lower this rate, the lower the loan will be. Thus, APR is one of its great allies in the search for mortgage loans.
As you can see, there are little tricks that can be very useful when looking for home loans. However, you should always have experienced professionals on your side who can guide you through the process. Lighthand Credit experts are ready to put their vast experience in the market at your disposal. Find a tailor made home loan solution with Lighthand Credit.