Why Getting the Right Home Loan Is So Important

Choosing and applying for the right home loan can be a time-consuming and confusing process. A lot of people have no idea where to begin. But it's absolutely vital to get the right home loan for you and your particular circumstances. Below, we walk through the importance of properly comparing home loans and choosing the one that's right for you — and how working with a mortgage broker like Nook makes that easy, at no charge to you.

The typical home loan process

Let's look at what most people in the Philippines do when they want a housing loan. First, they might go to the bank they already have an account with, and maybe one or two others. They pick up an application form and find out the basic requirements for the home loan. Or a real-estate person tells them they're accredited with a particular bank, so the borrower simply decides to go with that bank.

But this is a completely random way to choose a financial product that the borrower will live with for the next 15 to 20 years of their life — perhaps longer. That's roughly a quarter of their lifetime tied to that home loan, with no real proactive decision made about which bank to use. A home is often the biggest investment a person will ever make, yet many people just choose the bank a real-estate person suggested. It's a serious financial decision, but for many the time spent deciding on the loan product is tiny compared with the length of time they'll spend paying it back.

Home loan eligibility

On top of that, borrowers often have no way of knowing whether they actually meet the lending criteria of those banks. Each bank has its own set of lending policies — a person may get a loan from one bank but be declined by another for the very same application. The only way to find out whether you're eligible the old-fashioned way is to complete the entire housing-loan application process and see what the bank says. That's very time-consuming, and you have to repeat it bank by bank.

How a mortgage broker helps

If you work with a mortgage broker like Nook, you're able to properly compare home loans and choose the right one for you. A broker looks at your unique circumstances and matches you to the banks you're actually qualified to borrow from. Working with a mortgage broker is like visiting multiple banks at once — and they handle the whole home loan process for you, for free. A mortgage broker doesn't charge the borrower anything; the bank pays the broker once your loan is released. This is exactly why mortgage brokers are the number-one way people get housing loans around the world.

Why this matters for you

Nook is the Philippines' original and award-winning mortgage broker — Awarded Best Mortgage Broker Philippines by Pan Finance. Get pre-qualified online in about 3 minutes, and a dedicated Nook loan consultant compares 20+ banks, matches you to the lender most likely to approve you at the sharpest rate, and runs the entire application for you. Paperwork, follow-ups and all the back-and-forth with the bank are handled on your behalf, so you never deal with a bank directly. You don't fill in bank forms or visit branches — Nook does the legwork. And because it's a full-service brokerage paid by the bank, it's 100% free to you. Before you commit, Nook's loan calculators are a quick way to check your financial capacity, and the housing loan types guide explains your options.

In closing

So if you're considering buying a property or need a housing loan and want to understand your financing options, contact Nook today. The team can help you get pre-qualified in just a few minutes, and all the services are free for home loan borrowers. Don't pick a 15-to-20-year financial commitment at random — get the right home loan, matched to you, the first time.