7 Ways to Improve Your Chances of Getting a Housing Loan Approval

7 Ways to Improve Your Chances of housing loans approval



With the relatively high real estate prices in the country, most Filipinos choose to borrow money to afford the home of their dreams. But when it comes to getting approved for a housing loan, Philippines’ banks can be rather strict about who they lend money to. Fortunately, there are some things you can do to help improve your chances of getting a housing loan approval:

Keep a Good Credit History

Some people think that taking on loans of any kind is a bad idea. But if you always pay your loans on time without any issues, it can help you build a healthy credit record. Whether you completed your payments on a car loan, a personal loan, or a credit card bill, these will reflect positively on you as a responsible borrower.

On the other hand, banks will reject your application if they spot any red flags in your credit records. These can come in the form of non-payments, late payments, or repossessions. So make sure you only take on debts you’re sure you can repay.

Pay Off Your Existing Debts

Unbeknownst to many Filipinos, banks and other creditors share information about delinquent borrowers. So if you have a history of not paying your debts, lenders will see this as a warning sign and reject your application. And even if you do diligently pay off your loans every month, a lender may turn you away if you’re already juggling too many monthly amortizations.

That’s why it’s a good idea to clean up your credit history as much as you can before getting a loan. You can either pay off your smallest debts or put all your effort into eliminating your largest loans first.

Have a Stable Source of Income

If you’ve been thinking of switching companies or starting your own business, it may not be a good idea to do so before applying for a housing loan. Doing any of these may give lenders the impression that you are a risky borrower, which decreases your chances of getting housing loan approval.

Generally, conservative creditors are more likely to approve loans from applicants who have worked with their current employer for at least two years. The longer your job tenure, the more financially reliable you will appear. So try to stay at your current place of work while you’re going through the home buying process.

Save Up for the Downpayment

Most kinds of housing loans require an upfront downpayment, usually around 20 percent of the property’s total price. Having this amount on hand can help improve your credit position. Conversely, not having this money ready may cause creditors to reject your loan application.

So you’ll want to start building up your savings as much as you can. But you shouldn’t only save up enough money for the downpayment. Indeed, it’s in your best interest to set aside enough funds to cover your basic needs and potential emergencies. Otherwise, wiping out your entire savings in one go may leave you struggling financially and unable to pay your amortizations. In the worst cases, your property may even end up foreclosed.

Establish a Good Relationship with the Bank

Whenever possible, it’s best to apply for a housing loan from the same bank that handles any of your other financial needs. This could be in the form of a savings account, a credit card, or an investment account. A history of successful transactions with said bank helps improve your financial credibility. They’ll already know what it’s like to work with you, which increases your chances of having your housing loan approved.



If you wish to apply for a loan from a different bank, just continue to maintain your good relations with your current bank. Financial institutions will still honor proof or your credibility, even if these come from one of their competitors.

Prepare All the Necessary Documents

Establish yourself as a trustworthy borrower by acting professionally from start to finish. One way to do this is to gather all the required documents before applying for any loan.

Typically, you will need to provide a valid government-issued ID, proof of income, and the dealer’s quote. However, some banks may ask for different kinds of documents, so it’s best to call them in advance to clarify their list of requirements.

Keep Your Communication Lines Open

Once you’ve submitted all the requirements, make sure to keep an eye on your incoming calls or messages. Whenever your creditor reaches out to you, always make sure to respond promptly to them. They may be contacting you to ask you for some additional information to process your application or bring up any potential issues they’ve identified.

Failing to respond to your bank’s inquiries may cause delays in your loan application process. In the worst cases, the bank may not push through with your application at all.



Overall, banks prefer to lend money to people who can prove that they’re financially responsible and committed to paying off their debts in full. As long as you follow these tips and tricks, you’re much more likely to get your housing loan approved. Good luck with your application!

Until our next discovery in the City!
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