Loans are the way most people buy houses, but the more common they are, the more people encounter trouble in the loan process. What issues do home buyers need to know about home loans?

1. Stay rational and avoid “impulsive consumption”

Because the cost of buying a house is very stressful for most families, before buying a house, first, you must estimate your own expenses. Economic strength, confirming the ability to buy a house, and secondly, confirming one's loan limit and how much money can be borrowed are very important for the choice of buying a house. Of course the most important thing is to stay rational.

2. Understand the developer’s economic strength in advance

The reason to understand the developer’s strength lies in the approval of loans, because most of them are off-plan properties now, and if the developer is in the development process, Failure due to funding problems will affect the decentralization of bank loans. It will also affect the rights and interests of home buyers.

3. Don’t be in a hurry to pay the “deposit”

After the deposit is paid, it cannot be easily refunded. Therefore, if the developer fails the qualification review and the bank does not approve the loan, the contract cannot be signed and the deposit will be difficult to get back.

4. Use "provident fund" skillfully

If the home buyer is qualified for a provident fund loan, he should put the provident fund loan first. This is because the down payment ratio of the provident fund loan and Interest rates are lower. If a house buyer uses a commercial loan to purchase a house, he or she can withdraw the provident fund with the house purchase contract or invoice after paying the house payment.

5. There are advantages and disadvantages to early repayment

As to whether you should repay early, you need to consider the actual situation. For example, due to different loan repayment methods, equal amounts of principal are more suitable for early repayment than equal amounts of principal and interest. Also, you need to check whether there are other investment channels where the return rate is higher than the interest rate, or you can choose not to repay in a hurry.

6. The loan period can be extended

This is mainly for some home buyers who have difficulty repaying the loan and cannot repay the loan in time. However, the loan period can still be changed by coordinating with the bank. Generally speaking, the loan period can be extended. Say, it can only be changed once. It is still recommended that home buyers try to choose the longest loan term.

7. Don’t forget to cancel the mortgage after paying off the loan

After paying off the loan, the home buyer must remember to cancel the mortgage. The specific process is to take the loan settlement certificate and property certificate to the local real estate bureau to cancel the mortgage.

8. Don’t lose the contract

To apply for a loan, you need to sign a series of documents, as well as some materials. These documents need to be properly kept. Especially for some loans with a term of up to 30 years, it is easier to lose the loan contract and loan materials.

(The above answer was published on 2016-12-15, please refer to the actual relevant current home purchase policies)

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