After eyeing a particular property to be your future home, the next logical step is to work on your financial capacity to pay for it.
Filipinos are typically seguristas when it comes to ensuring that they make smart and confident homebuying decisions. And in order to get the best interest rates, it totally makes sense to apply for a home loan with multiple banks.
Applying for a home loan with multiple banks is a hassle if you go through each bank’s loan application process. The loan application process usually entails a lot of time, and in certain cases, would involve fees that would discourage even the most eager of homebuyers. Although most of the banks require the same types of documentation, there are some who will require additional papers or procedures that cost a hurried homebuyer time that he does not need to waste.
For homebuyers who are on the rush to buy their dream homes and have no luxury to assess which bank would be able to offer the best loan, here are three easy steps to apply for home financing:
1. Consult with a ZipMatch Concierge.
At this point, homebuyers have the natural inclination to talk to a real person who can help you take a strategic look at your finances and the available financing options you can avail for your home.
A ZipMatch Concierge can match you with the right bank for your home loan needs. During the consultation, the Concierge will be asking you questions about your preferred property, gauge your budget, and assess your level of commitment to determine how much you could avail a loan.
Still looking for a home yet? Why not look around Taguig or Makati for one?
2. Submit your documents.
The Concierge then collects all the required documents needed for processing your home loan requirements and submits your information to the right bank who can meet your home financing needs.
Question: Will applying for multiple banks hurt my credit score?
Answer: Applying for a home loan with multiple banks will not get you flagged as long as it will not lead you to owning multiple mortgages and that the length of the mortgage is within a specific period of time. Applying for a home loan with multiple banks is considered as one occurrence.
The Philippines currently does not have a unified credit bureau that would speed up the application screening process. However, this does not mean that you would not be flagged by banks if you have multiple loan applications. Banks who are under the Bankers Association of the Philippines (BAP), for example, do share some sort of financial database to go over an applicant’s credit history. Moreover, banks do their own exhaustive, physical assessments of an applicant’s financial capacity to determine whether the has the means to make long-term payments. The assessments are also done to prevent mortgage scams like “shotgunning”.
3. A bank who can aid you with your home financing will call you.
Once your information has been received by the bank or banks, they will notify you for pre-approval of your loan. A home loan pre-approval will give the lender/s the opportunity to look deep into your financial background and determine your creditworthiness.
Question: Can I haggle for discounted interest rates if I apply for a home loan with multiple banks?
Answer: Although most banks have the tendency to be a stickler to their interest rates, their mortgage terms are already competitive. At this step, however, there are some banks who would lock in the specific interest rate of the home loan. A rate lock-in is an important benefit for a homeowner, especially those who are on a tight budget and have set out their hearts on the interest rate that was first introduced.
Do you have a home in mind that you’d like to buy? Talk to a Concierge about your finance options by leaving a message via the chatbox on our website or at help@zipmatch.com.
