When buying a house in the Philippines, most lenders wouldn’t agree to loan you the total contract price of the property. Reliable Lancaster New City reviews would attest that lenders generally would only shoulder 80% to 90% of the cost.
If you want to purchase the house ASAP and don’t have the time to come up with a larger down payment, this can be a concern. Fortunately, you can do something to become eligible for a bigger loan. Here are some of the things you can do.
Impress Prospective Lenders
One of the main factors lenders consider when providing loans is the income of the borrower. The more money you make, the more creditworthy and less risky you become. But then again, you need to prove your loan repayment would only take up 28% of your monthly income.
Plus, make sure you have a stable job and insurance to reduce your chances of default on the mortgage.
Negotiate a Lower Price
Developers and real estate agents tend to be open for negotiation when less popular properties are in question. The housing demand in the Philippines may be increasing, but not all pieces of real estate are equally generating interest.
Buying a not so sought-after house and lot package can give you latitude in negotiating for a lower price. If you succeed, you may be able to obtain a larger loan.
Agree to a Higher Interest Rate
When all else fails, agreeing to pay a slightly higher interest rate can help seal the deal. Do compute to know up to how much interest hike you can absorb. After all, you could recoup your costs if your property increases in value fast, and sell it down the road.
Obtaining the best mortgage is more of an art than a science. If you can think like the lender, the more control you can have over the process.