Looking for a loan against your bonds? Following are some useful things to keep in mind before applying for a loan against bonds:
1. Checking affordability
Before you apply for a loan against bonds, you need to check your affordability. First, determine the right price to avoid wasting your time looking for unsuitable properties.
You can take help from a property finance consultant to understand the procedure of establishing what you can afford in terms of the loan.
2. Get pre-qualified
Another way to apply for the loan is to get your pre-qualification for a loan against bonds
. Companies will pre-qualify you at a certain cost for the specific bond amount that takes out your stress of applying for a bond, provided you have decided of buying a property.
3. Check your credit record
Many bond applications get declined for several reasons. You may not be affordable for repaying your monthly instalments or may need a 100% loan for pushing repayments beyond your reach. One critical consideration is your credit profile. This includes your employment history, as well as consumer bureau results, that offer a clear picture of your debt and payment record.
If your payment history is good, it will increase your asset value of acquiring a loan. To improve the credit record, you can cancel out your out-of-date credit cards first and ensure that you pay all instalments on time.
4.Submit correct information
For assisting your bank to determine its risk, you have to provide personal information like salary slips and bank statements, as well as a monthly statement of expenses on your credit history.
5. Get the best interest rate
The lower the risk of a bank to lend funds to a specific individual, better are the chances of an individual to get the best interest rate. There are various factors that go into its consideration, such as the size of your loan, your deposit and the repayment-to-income ratio.