Credit for Public Housing or commonly called the mortgage bank is a program or facility to borrow from banks to buy houses on credit. Mortgage is considered as one solution for home purchases in installments, and this program helps Community Sector to own a good house when no available cash.
In principle, the purchase of your home can be done in two ways: in cash or on credit. You can get a house in cash when you have money whose value is equal to the desired price of the house. For example, if the cash price of land & building houses the home is $ 210 million, then the house can be paid in cash if you have the cash amounting to 210 million plus the cost of expenses incurred for the sale and purchase.
However, people of middle economic level often do not have the cash for it. The amount of cash that they have perhaps only 50%, 40%, and even only 30%. The solution? Public Housing Loan or mortgage bank is a highly desirable solution for most people.
How how? When home prices are 210 millions desired, then you must pay a deposit or DP for XX% depending on the stipulations of the bank concerned. Suppose the bank requires 30% then you have to spend money from your savings amounting 70 millions . After a deposit or DP be resolved then the bank will then pay off the remaining balance of 70% or 140 millions. Usually the bank will not finance 100% for their safety margin when the borrower is not able to continue mortgage payments.
When you have enough money for the upfront payment, then you just proceed to next step ie the People's Housing Credit application process or a mortgage bank. When your funds are not sufficient for a down payment then you should save it first. Do not force yourself to ask a mortgage if the funds for the down payment is not sufficient. Keep in mind, the bank will only give credit if you have paid the deposit.
In addition, the important thing to know before filing for Public Housing Loan or mortgage bank is usually the bank will only approve it if the monthly installments not exceeding one third of your income or salary. Eg monthly salary is 12 millions, so the maximum monthly loan repayments to be approved by the bank is 4 millions. When your salary is insufficient, then there are 3 ways to get around, namely by raising money so that the DP Front or loan becomes smaller, the second way is by extending the installments that decrease the amount of monthly mortgage installments but time is longer, and the third is a combination of both steps to enlarge and extend down payment mortgage.
In principle, the purchase of your home can be done in two ways: in cash or on credit. You can get a house in cash when you have money whose value is equal to the desired price of the house. For example, if the cash price of land & building houses the home is $ 210 million, then the house can be paid in cash if you have the cash amounting to 210 million plus the cost of expenses incurred for the sale and purchase.
However, people of middle economic level often do not have the cash for it. The amount of cash that they have perhaps only 50%, 40%, and even only 30%. The solution? Public Housing Loan or mortgage bank is a highly desirable solution for most people.
How how? When home prices are 210 millions desired, then you must pay a deposit or DP for XX% depending on the stipulations of the bank concerned. Suppose the bank requires 30% then you have to spend money from your savings amounting 70 millions . After a deposit or DP be resolved then the bank will then pay off the remaining balance of 70% or 140 millions. Usually the bank will not finance 100% for their safety margin when the borrower is not able to continue mortgage payments.
When you have enough money for the upfront payment, then you just proceed to next step ie the People's Housing Credit application process or a mortgage bank. When your funds are not sufficient for a down payment then you should save it first. Do not force yourself to ask a mortgage if the funds for the down payment is not sufficient. Keep in mind, the bank will only give credit if you have paid the deposit.
In addition, the important thing to know before filing for Public Housing Loan or mortgage bank is usually the bank will only approve it if the monthly installments not exceeding one third of your income or salary. Eg monthly salary is 12 millions, so the maximum monthly loan repayments to be approved by the bank is 4 millions. When your salary is insufficient, then there are 3 ways to get around, namely by raising money so that the DP Front or loan becomes smaller, the second way is by extending the installments that decrease the amount of monthly mortgage installments but time is longer, and the third is a combination of both steps to enlarge and extend down payment mortgage.
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