Documents needed to prepare when borrowing money from the bank to buy a house

To own a dream home, in addition to own capital, many people choose bank loans as a financial leverage. However, to have the application approved quickly and smoothly, borrowers need to carefully prepare the necessary conditions and documents.

Illustration photo: Nam Khanh

According to the banks' instructions on conditions and procedures for home loans, below is some information to note:

Conditions and required documents

To be able to borrow money from the bank to buy a house, customers need to meet the following conditions:

Be a Vietnamese citizen; be 18 years of age or older at the time of loan application submission and not over 75 years of age at the end of the loan's credit term.

Have legal collateral; prove source of income and have full financial capacity.

Customers have no history of overdue debt at banks or other credit institutions.

Current residence has a branch or transaction office of the bank that needs to borrow capital; each loan has a maximum of 1 co-responsible person.

When borrowing money to buy a house at the bank, customers need to prepare a complete set of documents. Each bank will have different requirements for documents when borrowing capital, but a common set of documents according to general requirements will include:

Financial records: Salary confirmation or salary statement of the last 6 months (if income is from salary) or business registration certificate/confirmation from units and tax receipts/tax payment documents, business license (if income is from business activities).

Valid legal documents include: Valid passport/citizen identification card; household registration book/temporary residence book/KT3/temporary residence confirmation; documents proving marital status.

Collateral documents: vehicle registration, land use right certificate, savings book, etc.

In addition, the file also includes a loan purpose statement and a debt repayment plan statement.

Regarding home loan procedures , including the following steps:

Step 1: Customers need to prepare all documents as required by bank staff.

Step 2: Bank staff will conduct an appraisal of the application and value the customer's mortgaged assets. During the appraisal process, additional documents/documents may be required, so customers should be ready to provide more.

Step 3: The bank staff will prepare a credit report and request loan approval from the competent authority. The competent authority will approve the loan based on the records and information reported by the staff.

Step 4: Bank staff will disburse the loan, customers can receive the loan directly via bank transfer.

Current forms of home loans

Based on loan needs, banks currently offer the following ways to borrow money to buy a house:

Mortgage loan: This is a form of bank loan to buy a house using legal collateral according to bank regulations. Customers can borrow up to 80% of the value of the property.

Unsecured loan: Loan based entirely on the borrower's reputation without the need for collateral.

Overdraft: In this form of loan, the bank allows customers to use more money than the amount in their account within the prescribed limit.

Installment loan: This form is chosen by many because customers will have to pay the debt and interest periodically with the same amount as agreed in the contract.

Things to note when borrowing money to buy a house

Currently there are many home loan packages, with different loan terms and interest rates. During the loan process, you need to pay attention to:

Determine the appropriate loan. Calculating and choosing a reasonable loan package will help you arrange your family expenses and monthly debt payments without financial pressure.

Understand how interest is calculated. You should learn how interest is calculated on the loan package that the bank has offered. This will help you find a loan package that suits your financial situation and income. From there, you will be more proactive in planning your regular loan payments.

Choose a reasonable loan term. You should consider when choosing a home loan term. Short-term loan packages will be suitable for those who have enough financial capacity to pay off the debt in a short time. The longer the loan term, the monthly payments will be divided into smaller amounts, helping you reduce financial pressure.

According to Vietnamnet

Source: https://baohaiphong.vn/ho-so-can-chuan-bi-khi-vay-tien-ngan-hang-de-mua-nha-525564.html