Buying land and investing in real estate is an important decision for many people, and is also an opportunity to create future income and profits. However, this is not easy and not everyone has the financial potential to purchase real estate. At this time, understanding and applying the experience of borrowing money to buy land with the best interest rates becomes important. From financial planning to finding suitable loan products and effectively managing debt, these experiences play a decisive role in the success of your real estate investment project. Friend.

Let's explore 7 important experiences to help you borrow money to buy land with the best interest rates in this article!

1. Determine a reasonable loan amount

Determining the loan amount is the first important step when you consider investing in land. Eximbank recommends that this requires careful consideration, to ensure that the loan accurately reflects your ability to pay. Don't borrow too much to avoid having trouble repaying the debt. On the contrary, a loan that is too small may leave you with insufficient finances to buy the land you desire.

To determine the appropriate loan amount, calculate your total income and subtract fixed expenses such as rent, electricity, water, internet, phone, as well as tuition and daily expenses. This will help you know how much extra money you can spend paying off your debt each month. In addition, for non-fixed expenses such as medical, entertainment, and home repairs, consider savings measures to optimize solvency.

Determine the appropriate loan limit

2. Choose Loan Period

Deciding on the length of a loan to buy land is an important process for borrowers. This directly affects the interest rate and monthly payment amount. To ensure financial feasibility and personal planning, you need to consider choosing the appropriate loan term:

Short-Term Loan: If you want to pay off quickly, choose a short-term loan period (for example, 1 or 2 years). However, the interest rate will be higher than for long-term loans.
Long-Term Loan: If repayment is possible over a longer period of time, taking a long-term loan (5 or 10 years) helps reduce the monthly burden. Interest rates are usually lower than for short-term periods.

When choosing a loan term, consider your ability to repay to avoid delinquency and maintain a positive credit record. Consulting with a financial expert is also an important step to help you make the right decisions and protect your personal interests.

Choose the loan term to get the lowest interest rate

3. Learn about Interest Rate Regulations

Before borrowing money to buy land, it is important to clearly understand interest rate regulations. This regulation may vary depending on the bank and the time of loan, so you need to carefully research the information on the bank's website or at the branch.

Interest rate calculation is usually done in two ways: decreasing balance or fixed balance. Decreasing balances charge interest on the remaining debt after each payment period, while fixed balances charge interest on the entire original loan amount.

Understanding the fees involved is also an important step. This includes service fees, early payment fees, application processing fees, property appraisal fees, and other fees. Learning about these amounts carefully will help you evaluate the cost of a land loan and avoid trouble during the payment process.

In addition, learn about interest rate policies such as incentives for loyal customers, initial preferential interest rates, and promotional programs. Understanding these policies will help you choose the bank with the lowest interest rate and best suit your personal needs.

4. Learn About Incentive Programs

Today, many banks offer preferential programs on interest rates and service fees to attract customers. Carefully learning about incentive programs will help you choose a bank that offers low interest rates and best suits your personal financial needs. To choose the right program, please refer to the information on the bank's official information pages. And most importantly, carefully learn about the conditions and regulations of each bank.

Find out about loan incentive programs

Promotional programs often include preferential interest rates for the first time, preferential interest rates for loyal customers, service fee exemptions, and other promotions. Before deciding, review carefully to ensure that you meet the requirements and conditions to enjoy the offer.

5. Read the Contract Carefully

Before signing a land loan contract, it is important to carefully read and understand each clause. The contract needs to be written clearly, in detail, and without ambiguous information, to avoid unwanted disputes later. Terms regarding interest rates, service fees, overdue payment penalties, and articles related to mortgage resolution all need to be updated in the contract.

If there are any terms that are confusing or unsuitable for you, discuss them with your bank staff before signing the contract. In this way, carefully reading the contract not only helps you avoid potential risks but also ensures the protection of your personal rights during the process of borrowing money to buy land.

6. Early Payment

Paying off your loan early is a strategy to help reduce interest costs and avoid overdue penalties. If financial capacity allows, accumulate and pay early to minimize the amount payable. You can also use savings to pay early.

And remember to pay before due date to have a good loan history

However, before doing this, you need to carefully learn about the bank's regulations and policies to ensure compliance with payment terms. This will help reduce costs and complete the loan effectively and quickly.

7. Dispute Resolution According to Regulations

After completing loan obligations, the mortgage release process is an important step to ensure property ownership. Correct implementation of mortgage release procedures, accompanied by confirmation from competent authorities and banks, helps ensure that the mortgaged property truly becomes your property.

Eximbank - Vietnam Export-Import Bank, one of the reputable addresses in the field of home and land loans, offers customers attractive loan policies. So, if you are planning to borrow to buy land, learn more about our services. From planning to signing the loan contract, so you can realize your goal of owning your dream land in a smart and sustainable way.

Above are 7 effective tips for borrowing money and limiting unwanted risks when using services from banks. If you need a loan to buy land, please use the loan service from Eximbank, where we also provide many preferential loan services with low interest rates for users.

Find out more information at Eximbank's official website: https://eximbank.com.vn/