Applied for a home loan, but why did I get less than I expected?

Why is your home loan amount lower than expected? Read this to find out! The reasons you need to know before you get disappointed!

When buying a home, everyone dreams of their perfect house. But oh! After applying for a loan, the approved amount is so much… less than expected! Today, Proview Living reveals why banks don't grant the loan amount we dream of! Let's get the juicy details before applying for a loan. Don't let anyone trick you!

1. Poor Credit History (Bad Financial Record)

Aha! Have you ever been short on cash or made late payments? It's no surprise then that banks might see you as "a risk!"
Proview Tips: To build good credit, make sure to pay your debts on time for at least 6 months. This will help you apply for a loan without being rejected!

2. Insufficient Income

For salaried employees, we need to be a little understanding. Banks primarily look at income. How much you can borrow depends on your monthly salary!
Proview Tips: If your income is low, try to supplement it with extra work or pay off small debts before applying for a loan. This will make you appear more creditworthy!

3. High Existing Debt Burden

If you have multiple credit cards, a car loan, and other debts, the bank will count everything! The more debt you have, the lower your approved loan amount!
Proview Tips: Reduce your credit card debt before applying for a loan to present a clean financial profile to the bank and show them you're not a high-risk borrower!

4. Unstable Income or Job Change Before Loan Application

If you've recently changed jobs or work as a freelancer, the bank might think... hmm, your income isn't stable yet!
Proview Tips: Stay at your current job for over 6 months and have salary slips to show. This will make the approval process much smoother!

5. Property Appraisal Value Lower Than Actual Purchase Price

Oh no! You want to buy a house for 5 million, but the bank only appraises it for 4 million... no matter how you apply, you won't get what you hoped for!
Proview Tips: Don't forget to check the approximate appraisal value with the bank before buying a house, or have a Buyer Agent assist you, so you don't get disappointed!

6. Requesting an Unrealistically High Loan Amount

You want a high amount upfront... but you forgot to consider your ability to repay! Banks know exactly how much you can afford. If you ask for too much, they will reduce it anyway!
Proview Tips: Calculate beforehand how much you can afford to pay back, ideally no more than 40% of your monthly income. This shows the bank that you can comfortably manage the repayments.

Summary: Know in advance to avoid disappointment! Prepare well, get approved quickly, and have no problems!

Don't let ignorance deceive you! If you know these tips, you can prepare like a pro. Getting your dream home loan won't be difficult at all! If you want to know more or are unsure about loan applications, consult Proview Living. We are ready to be your trusted advisor, providing personalized advice!