What is the transaction process of second-hand housing loan? Which mortgage early repayment method is cost-effective?

For a family, mortgage is a huge monthly expense. Many friends with sufficient funds have thought about early repayment. Early repayment is subject to penalty interest, so some early repayments are not converted. So how much is the penalty interest for early repayment? How to choose the early repayment method to be cost-effective? Let's study it together today.

Contents of this article

1. What is the transaction process of second-hand housing loan?

2. Which mortgage early repayment method is cost-effective?

3. What factors determine whether a mortgage loan is issued?

What is the transaction process of second-hand housing loan?

1. During the application stage, submit the materials to the bank and apply.

2. During the evaluation stage, the bank contacts a real estate evaluation agency to inspect the house and conduct an evaluation.

3. During the approval stage, the bank reviews the qualifications of the loan applicant based on the evaluation report and other materials.

4. In the down payment stage, after approval, the buyer pays the down payment to the seller and signs the contract. Then, the buyer goes to the real estate exchange to handle the property transfer procedures.

5. Go through the mortgage registration. After the buyer receives the real estate certificate, he needs to go through the real estate mortgage registration and insurance.

6. Loan issuance stage. After completing the loan issuance procedures, the bank will deposit the house price into the seller's account, and the money will be directly transferred to the seller's account.

7. Loan repayment stage: The buyer repays the loan on schedule according to the contract.

Which mortgage prepayment method is more cost-effective?

First of all, the penalty interest for early repayment is clearly stipulated in the bank contract when borrowing. Generally, it takes one year to repay the loan in advance. The penalty interest for early repayment is about one thousandth. Each bank has different regulations. You can take out the mortgage contract and take a look.

We currently have two ways to repay early:

One is to repay the entire loan in advance: This is undoubtedly the best option, as you can pay less interest, but the interest you have already paid will not be refunded. Friends with ample funds can choose this option, which is a one-time solution.

One is partial early repayment: if you make partial early repayment, you can pay off part of the loan, and the remaining part can be paid in a shorter repayment period or with a reduced repayment amount. No matter which method you choose, you will not have to pay interest on the part of the loan you pay off.

Therefore, everyone should choose the method that is more convenient and cost-effective for them based on their actual financial situation.

What factors determine whether a mortgage is granted?

1. Credit status. Credit status is an economic ID card and plays an important role in the financial industry. Mortgages have high credit requirements because the repayment amount is high and the term is long, and the buyer's integrity is needed to ensure timely repayment. The main credit assessment indicators are credit delinquency rate, credit card usage rate, and loan rate.

2. Assets and liabilities. When applying for a mortgage, if you have assets in your name, you can better guarantee your repayment ability. If you cannot repay the loan in the short term, you can auction or mortgage the assets for repayment. Assets and liabilities mainly refer to other assets under the name of an individual, the total personal debt, and whether the assets are insufficient to cover the debts.

3. Repayment ability. Work unit, cash flow status, and income stability can all reflect repayment ability, so it is recommended that you start optimizing your cash flow records six months in advance. If you don’t have a stable income, you can keep your own cash flow, which some banks will accept. In addition, don’t change jobs frequently and maintain the stability of your job and social security.