7 steps to prepare for a home loan And what you need to know

1. Know your borrowing ability and the amount of the home installment with the bank

            The formula for calculating the price of a house that can be borrowed to buy a house is It can be roughly calculated using the formula (monthly income) that can be salvaged Some banks may move the amount of income up or down depending on the criteria considered in the home loan process. This limit is considered to be the limit given if you have no debt at all, so you need to take a look. Our "debt to income" or bank terminology is called the DSR (Debt Service Ratio), which mostly allows home borrowers to have a debt burden of 30-40% of their income, so the formula is (income per month) 000 baht debt burden that Refers to every debt that you have. Whether it's car payments mobile phone Electrical appliances, etc. Therefore, assuming that you have a car payment debt of 8,000 baht per month, your ability to make house payments with the bank that is remaining available is only 1,000-4,000 baht. You will calculate back how much you can borrow to buy a house using the formula. This (1,000,000 ÷ 7,000) x (Ability to make home payments with the project) = (Amount that can be borrowed) for example (1,000,000 ÷ 7,000) x 4,000 = Home loan available at a price of 571,429 baht *This case requires that the borrower has debt burden. 40% when knowing your ability to make home installment payments with the bank and the price of the house that can be borrowed for oneself Then choose to find a place to live that meets your heart and is suitable for your abilities. 000) x (Ability to repay home installments with the project) = (Amount that can be borrowed) for example (1,000,000 ÷ 7,000) x 4,000 = Can get a home loan at a price of 571,429 baht *In this case, the borrower is required to have a debt burden of 40% when known. Ability to make home installment payments with the bank and the price of the house that can be borrowed for oneself Then choose to find a place to live that meets your heart and is suitable for your abilities. 000) x (Ability to repay home installments with the project) = (Amount that can be borrowed) for example (1,000,000 ÷ 7,000) x 4,000 = Can get a home loan at a price of 571,429 baht *In this case, the borrower is required to have a debt burden of 40% when known. Ability to make home installment payments with the bank and the price of the house that can be borrowed for oneself Then choose to find a place to live that meets your heart and is suitable for your abilities.

2. Save up for a down payment.

              While searching Another important thing in the home buying process is We should also save money for a down payment on a house or condominium. Because the bank's rule is that they can give out home loans up to 90% of the house price. For example, for a house price of 1 million baht, the bank will lend a maximum of 9 hundred thousand baht. The other 1 hundred thousand baht is therefore cash that we have to pay directly to the project developer. so Various housing projects have programs that allow us to make monthly down payments on the project while the project is still under construction. (Banks will make loans once the home is built.) A down payment is generally 10-20% of the price. For example: The price of a single house is 5 million baht, charging a down payment of 10% = 5 hundred thousand baht with a down payment of 10 months = paying an average house down payment of 50 per month, 000 baht with a relatively high monthly down payment on a house. This causes us to prepare to save some money first to use as a down payment on a house. However, due to the relaxation of measures to control mortgage loans or LTV, buyers of houses and condos (Project completed and ready to move in) 100% loan available (until December 2022)

3. Make a beautiful bank account statement.

            The next part of the home buying process It is a matter of documents when applying for a home loan. The bank will ask to see your bank account for the past 6 months. During these 6 months, there should be money in the account regularly. It should not be completely withdrawn. And if you have extra monthly income Or work as a freelancer or seller who receives money on a one-time/daily basis. It should also be transferred into the account regularly.

4. Pay your debts on time.

           Another thing that the bank will check is the "Credit Bureau" which will have the borrower's debt repayment history for the past 3 years. In these 3 years, if the debt has not been repaid on time. Or what is often called being on the "blacklist" which is the definition of “Those with a history of poor debt repayment or unable to repay debt according to the agreement” are considered borrowers who are at risk of being in bad debt. Therefore, if they borrow to purchase any products or pay credit card bills. You should pay on time every time. Because being blacklisted can cause banks to completely refuse to lend money to buy a home. Anyone who is considering a home loan can check their own creditworthiness. The National Credit Bureau Company Limited offers checking services. Various credit bureau channels You can see more here.

5. Close all debt accounts before applying for a home loan.

           It is a continuation of point 1. When there is existing debt, it will cause us to have a lower home loan limit. Therefore, any debt that can be covered with money to close the account should be done immediately before applying for a home loan. Even if there is not much time left, such as paying installments for a mobile phone. Even though there are only 3 months left until the payments are all gone, at the time of applying for a home loan. The bank will assume that we have this debt.

6. Unnecessary credit cards…cancel

             Many people hold more than one credit card because of tempting offers when banks invite them to apply for a credit card. Even though it is rarely used, banks will see that borrowers have a higher chance of incurring debt later on from credit cards. This will lower your chances of being approved for a home loan. Therefore, before applying for a home loan, you should request to cancel only 1-2 credit cards.

7. Prepare documents: salary slips work certificate Evidence of extra income

             The final step in buying a home It is the preparation of documents when applying for a home loan with the bank. The part that may require special care is evidence of work and income such as payslips. work certificate We may have to go about asking for approval from the parent agency. And some agencies may take a long time to receive approval. Preparation in advance is important to make applying for a home loan go smoothly.

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