"Six Essentials" of Buying a House with Loan
1. Apply for the loan amount according to your own ability.
When applying for personal housing loans, borrowers should make correct judgments on their current economic strength and repayment ability, and at the same time make correct and objective predictions on their future income and expenditure.
2. Choose a good loan bank for mortgage.
For borrowers, if they buy existing houses or second-hand houses, they can choose their own loan banks. The more and more services provided by mortgage banks, the more flexible and diverse personal financial services borrowers can obtain, and the richer the service and product portfolio. From the perspective of citizens, there is no doubt that the more choices citizens have, the better.
3. Choose the repayment method that suits you best.
At present, there are basically two ways to repay personal housing loans: one is equal repayment, and the other is equal principal repayment.
The advantage of equal repayment is that the borrower can accurately grasp the monthly repayment amount and arrange the family's income and expenditure in a planned way. Average capital's repayment method is more suitable for individuals who have strong repayment ability at the initial stage of repayment and want to pay a large amount at the initial stage of repayment to reduce interest expenses.
The information provided to the bank should be true.
To apply for commercial personal housing loans, banks generally require borrowers to provide proof of economic income. For individuals, the true personal occupation, position and recent economic income should be provided. Because if your income doesn't reach a certain level and you don't have enough repayment ability, but you exaggerate your income level, you are likely to default at the initial stage of repayment, and it is confirmed by bank investigation that you have provided false certificates, which will greatly reduce the bank's trust in you, thus affecting your loan application.
5. Provide my address accurately and timely.
If the address provided by the borrower to the bank is accurate, the bank will contact you conveniently and receive the repayment notice from the bank on time every month. When the People's Bank of China adjusts the loan interest rate, you can receive the interest rate adjustment notice from the bank at the beginning of the year.
In addition, the borrower is reminded that when moving to a new home, he must inform the loan bank of his new contact address and contact information in time.
6. Repay on time every month to avoid penalty interest.
For the borrower, it is necessary to pay attention to whether there is enough funds in his repayment account before the repayment date agreed every month, so as to prevent the default from being punished by the bank because of his negligence, and never leave a bad credit record in the bank because of his negligence.
Housing loan "six don't"
1. Don't use the provident fund before applying for a loan.
If the borrower takes the balance of the provident fund to pay the house payment before the loan, then the balance of the provident fund in the provident fund account is zero, and the amount of the provident fund loan is zero, which means that the borrower will not apply for the provident fund loan.
2. Don't repay the loan in advance in the first year.
According to the relevant provisions of provident fund loans, part of the prepayment should be made after one year of repayment, and the amount returned should exceed the repayment amount of six months.
Don't forget to find the bank around you if you have difficulty in repaying the loan.
Don't insist on it yourself when your solvency drops during the loan period and it is difficult to repay. You can apply to the bank for an extension of the loan period. After investigation by the bank, if the situation is true and there is no default in repaying the loan principal and interest, the bank will accept your application for extending the loan term.
4. Don't forget to inform when renting a house after the loan.
When renting a mortgaged house during the loan period, the lessee must be informed of the mortgage facts in writing.
Don't forget to cancel the mortgage after the loan is paid off.
When you have paid off all the principal and interest of the loan, you can go to the district/county real estate trading center where the property is located to cancel the mortgage with the bank's loan settlement certificate and other rights certificate of the mortgaged property.
6. Don't lose the loan contract and IOUs.
When applying for a mortgage loan, the loan contract and the receipt signed by the bank with you are all important legal documents. As the loan term can be up to 30 years, as a borrower, you should take good care of your contracts and IOUs, and read the terms of the contracts carefully to understand your rights and obligations.