GabrielaC Article writer, life lover, knowledge developer and owner at

When is the Right Time to Apply for a Home Loan

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Applying for a home loan gives financial assistance to finally be able to buy your own house. However, just like in everything else that we do, the right timing is very important. It is not easy to get approval most especially if it is your first time. There are many factors to take into consideration especially proving that you are capable of paying back the loan.

You cannot just decide to apply for a home loan because you see your friends or other relatives buying their own houses. You should find the right time for you. And when is that exactly? Here are some tips for you:

  1. You have the money for down payment – when buying a house, usually it requires 20% down payment so be sure that you have this money before you continue with your plan to apply for a home loan and buy a house. Some people borrow money for the down payment and then apply for a home loan. That can be very difficult to pay. So it is best to save up for the down payment first. This is a good indication that you are ready to buy a house and apply for a loan.
  2. You have a stable job or source of income – have you been in your current job for at least two years? Before applying for a loan, you should make sure that you are regular on your job and that the company is stable. This is to ensure that you have source of income to pay off your mortgage for the next 3 to 5 years. Most banks or lenders look at your job history to check if your source of income is stable enough to support you in the coming years.
  3. You have excellent credit score – if you are looking to apply for fixed rate home loans then be sure that you have excellent credit score or else it might be difficult to get approval. Make sure that you are paying your debt or other loans on time and that you have good credit history.
  4. You have enough savings – lastly, it is important that you still have enough savings after you take out the money for down payment. This comes in handy if there are emergency situations wherein you need money. Lenders look at this factor too to ensure that no matter what happens that you can fulfill your promise to pay the money you borrowed. For example, in the middle of paying your mortgage, you lost your job, it is important that you still have savings that can cover your monthly loan payment.
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When you answer yes to all those scenarios then yes, you can apply for a home loan now. It means that you are ready in all ways and not just because of peer pressure. It is important to always look at the big picture. Do not just think about the present like how you are very eager to buy a house but instead think about your future too, do you think you can pay the money that you will borrow? If you are positive and confident about it, then go for it.

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GabrielaC Article writer, life lover, knowledge developer and owner at

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