10 questions to ask yourself before getting a home loan
You’ve got your savings, you’ve selected a house, you’ve selected a bank to get the mortage from… so you think you’re ready to apply for a home loan? We suggest not. At least, not until you’ve answered these 10 questions that every new house owner must ask themselves: Q 1. Do I have any pending debts? Your home loan is a huge amount. Even if you choose a long tenure, you may end up paying a large amount as equated monthly instalment (EMI). More importantly, the amount of loan the bank offers you will depend on the Total Debt Servicing Ratio (TDSR), which is the percentage of your income that goes in repayment of existing loans, including credit card bills. The maximum TDSR you can have is 60% - so if your monthly repayments are more than 40% of your total income, you will not be able to get the home loan amount you desire. So ensure that you clear off as many debts as you can, before applying for a home loan. Q 2. How’s that credit score looking? Having little or no existi