5 Things to Check Before Applying for a Mortgage Loan: A Practical Guide to Easily Prioritizing Different Loans for Different Situations. This article will help you quickly review interest rates, costs, and creditworthiness requirements through a mortgage loan comparison checklist.
Comparison of loan product types and interest rates
Understand the difference between fixed and variable rate hybrids.
Pros and Cons of Fixed Interest Rates
It is stable because the interest burden is easy to predict, but the initial interest rate may be high.
Pros and Cons of Variable Interest Rates
The initial interest rate is low, so the burden is less, but you must bear the risk of interest rate increases.
팁
During periods of rising interest rates, prioritize considering fixed-rate loans.
Repayment method and period
Compare the total interest differences between equal principal and interest and equal principal repayment types.
Equal principal and interest
The monthly repayment amount is fixed, making it easy to plan your life.
Equal principal
The initial burden is high, but the interest burden is low in the long run.
팁
If repayment flexibility is important to your financial situation, check the partial repayment policy.
Comparing initial costs and fees
Check the prepayment fee, stamp duty, guarantee fee, and loan execution fee.
example
High prepayment penalties may limit your early repayment plans.
팁
Take advantage of our fee discount promotions to save money.
Understanding Collateral Value LTV DTI
The loan-to-value ratio (LTV) affects loan limits and interest rates.
LTV checkpoint
A higher LTV increases your loan limit, but interest rates and screening criteria may change.
DTI and DSR
This refers to your ability to repay compared to your income, so please prepare your current income information.
Credit rating and screening criteria
Credit scores, debt history, and income verification greatly impact approval.
Prepare documents
If you are a salaried worker, bring your employment certificate and payslip.
팁
You can compare credit ratings as if you were shopping by checking your expected credit rating through a pre-credit inquiry.
5-Point Mortgage Loan Comparison Checklist
Quickly compare the conditions of each financial institution with the checklist below.
- Interest rate types and preferential rates Check the actual applicable interest rate
- Total cost Includes early repayment fee, guarantee fee, etc.
- Repayment method Monthly repayment amount and long-term interest burden
- Possibility of passing the examination Whether credit score and income data are ready
- Loan-to-value ratio (LTV) Impact of loan limit and interest rate
Comparative examples
- Bank A variable interest rate 2.8 percent, early repayment fee 1 percent
- Bank B fixed interest rate 3.2 percent preferential interest rate applicable
Frequently Asked Questions
How to get a preferential interest rate on a home mortgage loan
You can receive preferential treatment by linking your salary transfer, actual residency requirements, and products you own.
When is the early repayment fee charged?
It is imposed upon repayment within a certain period of time according to the terms of the contract and varies by bank.
In what cases is a refinancing loan advantageous?
When other banks offer lower interest rates or greater fees, compare the total cost to make your decision.
What documents are required for loan review?
Prepare basic documents such as your ID, proof of income, proof of employment, and a copy of your housing register.
What are the alternatives when your credit score is low?
You can increase your chances of approval by utilizing a guaranteed loan or lowering your collateral ratio.
Review your interest rate, cost, repayment, and collateral requirements with this three-line mortgage loan comparison checklist.
You can reduce costs by comparing the terms and conditions of each financial institution using a pre-loan checklist.
As you prepare for your mortgage loan, reviewing this guide will help you in your practice.