2. The loan amount is high. Provident fund loans depend on the total housing price of the applicant, the balance of the provident fund account and other factors, but usually, the loan amount is small. The commercial loan amount is relatively high.
3. Commercial loans are quick to buy a house. A friend said that it has been two months since he applied for a provident fund loan, but nothing has happened and he has not been approved. Commercial loans are faster in lending. If the procedures are complete, it can be approved on the same day and the loan can be released within three days.
What are the precautions for applying for a commercial loan?
First, prepare information in advance.
Property buyers need a series of materials to apply for commercial loans, mainly including: ID card, household registration book, income certificate for the past six months, and running water certificate. It should be noted that the proof of income must be guaranteed to be twice as much as the monthly loan application. It is recommended to open a bank with more income to prove the income certificate.
Second, the credit status is good.
Undoubtedly, bad credit information will affect the loan application. Under normal circumstances, if there are three consecutive overdue records accumulated for more than six times in personal credit records, the loan application will be rejected to a large extent.
Credit cards, mortgages and car loans will all appear in your personal credit report if they are overdue. Property buyers can visit the People's Bank of China for personal credit inquiry, but the results are for reference only, and the loan is subject to the actual inquiry results of the bank.
Third, pay attention to the loan term.
The longest loan term of a bank commercial loan is 30 years. If the applicant meets the conditions of long loan term, he can choose the loan term at will, such as 20 years, 10 years, etc. Different loan years directly affect the monthly payment. When the total loan amount is fixed, the shorter the loan term, the less interest will be generated and the more monthly payment will be made.
The loan term can be chosen according to one's own economic strength. For example, high-income people can shorten the loan time and reduce the interest cost. And property buyers with average economic strength can choose a longer loan period to reduce the pressure of monthly supply.
Fourth, understand the repayment method.
There are two common repayment methods, equal principal and interest and average principal. When choosing repayment methods, buyers can choose according to their future income expectations and fund disposal plans.
Average capital plus interest
Advantages: the monthly repayment amount is fixed and the repayment is convenient; Disadvantages: there are many repayment interests, and it is not cost-effective to repay in advance in the later period.
Average capital
Advantages: the total expenditure is small, and it is cost-effective to repay in advance in the later period; Disadvantages: the monthly repayment amount is not fixed, and the early burden is heavy.
It is also worth noting that property buyers should avoid overdue repayment. Overdue repayment will not only produce credit stains, affect your subsequent loans, but also generate certain interest. If the repayment date falls on a holiday, it is necessary to prepare the mortgage in advance and transfer the money to the repayment account to avoid overdue due to the delay of the holiday.
Verb (abbreviation of verb) Pay attention to the time point of prepayment.
Early repayment refers to the behavior of the lender to repay part or all of the mortgage loan in advance on the basis of ensuring the full repayment of the principal and interest of the individual housing loan on a monthly basis. However, buyers need to pay attention to the fact that there are certain conditions for prepayment. If it does not meet the requirements, the bank may charge a part of liquidated damages. However, due to the different regulations of cities and banks, lenders need to consult the banks in advance.