Detailed instructions on how to borrow from a bank to buy a house [Latest 2025]

1. Should or should not take a bank loan to buy a house in 2025? 

Below are the advantages and disadvantages of bank loans: 

If you are considering buying a home within the year 2024, Bank loans are a better choice thanks to preferential interest rates, long loan terms, and large loan limits. 

However, to avoid financial difficulties, make sure you have a reasonable spending plan and prepare complete documents. Borrowing through a financial company or application is only suitable for small, short-term capital needs, and should not be used for the purpose of buying a house due to the high cost.

2. Detailed instructions on how to borrow from a bank to buy a house 

To borrow from a bank to buy a home, you need to follow these steps sequentially:

2.1. Consider bank loan conditions to buy a home

Conditions for bank loans to buy a home may vary depending on each bank. However, basic requirements usually include:

• Amount of own money: You need to prepare at least 20-30% of the value of the house you plan to buy. 
• Age: Borrowers are between the ages of 18 and 65 years old. 
• Income: Have a stable monthly income and be able to repay debt on time. 
• Collateral: Assets used for mortgage must have full legal documentation. 
• Credit history: Credit history must be clear, with no bad debt or unpaid overdue debt. 
• Household registration/Temporary residence registration: You need to have a household registration or temporary residence registration in the area where the lending bank's branch is located.
• Legal capacity: Must have full capacity for civil acts and civil law according to Vietnamese regulations. 
• Passport and entry stamp: Passport is still valid and confirmed by Vietnam immigration authority. 
• House ownership limits: You can only own a maximum of 30% of the apartments in an apartment building and the ownership term must not exceed 50 years (can be extended). 

2.2. Choose the appropriate form of home loan from a bank 

Based on loan needs, banks often provide the following types of home loans:

• Mortgage loan: This is a form of loan using legal collateral according to bank regulations. Borrowers can borrow up to 80% of the property value. Loan terms usually last up to 25 years, depending on each bank's policy. If the property is a house in a project that does not have a pink book, the borrower can only borrow mortgage from banks affiliated with the investor, or must use other collateral if borrowing from another bank. 
• Unsecured loan: No collateral is required, the bank approves the loan based on the borrower's income level, personal reputation and credit history. This form has the advantage of quick disbursement but often comes with higher interest rates and shorter loan terms than mortgage loans. 
• Overdraft loan: Allows the borrower to use more than the amount available in the account, within the limit approved by the bank. 
• Installment loan: The borrower repays the principal and interest periodically within the period agreed with the bank. 

Thus, if you have guaranteed assets and want to borrow a large amount of money over a long period of time, a mortgage loan is the optimal choice, especially suitable when buying a house in a project or real estate that already has a red book.

For those who do not have collateral but have a stable income, an unsecured loan is a suitable solution to quickly receive a loan, even though the loan term is shorter. 

Overdraft loans will be suitable for people who have regularly operating bank accounts and need to flexibly rotate capital in a short time. Finally, if you want to repay debt regularly according to a clear plan, installment loans are the ideal solution. 

2.3. Prepare bank loan documents to buy a home

In order for the bank loan process to buy a home to go quickly and smoothly, you need to pay attention to the application with the following documents and requirements:

2.4. Procedures for bank loans to buy a house

The procedure for a bank loan to buy a home takes place in the following 4 steps:

• Step 1 - Prepare documents: Borrowers prepare documents as instructed above. However, it is necessary to refer to the specific document requirements of each bank. 
• Step 2 - Document appraisal and asset valuation: The bank will understand the loan needs, then based on the actual conditions of each customer to provide instructions on providing complete documents according to regulations. Once all documents have been received, the bank will conduct an appraisal of the property and related information. The appraisal process includes: 

Check customer's credit history and credit score. 

Discussion and appraisal over the phone.

Check the actual place of residence, place of work/business and perform collateral valuation. 

• Step 3 - Loan approval and disbursement: Once the appraisal process is completed, the approval level will review and decide on the loan based on documents and reports from the credit officer. 
• Step 4 - Credit monitoring and contract finalization: The home loan process only ends when the borrower completes payment of the entire debt, including principal and interest. During the loan period, the bank will monitor the use of the loan to ensure it is suitable for the committed purpose, and at the same time check the customer's financial situation to ensure the ability to repay the loan is maintained stably. 

3. 6+ important notes when borrowing from a bank to buy a house

To borrow from a bank to buy a home, you need to pay attention to the following 6 issues:

• Check service fees and fees related to the loan package: Carefully research the fees incurred throughout the loan process, including management fees, appraisal fees and other costs to avoid financial surprises. 
• Note the penalty for early repayment: Some banks apply penalty fees if you repay the loan early, so you need to consider the loan terms to have a reasonable financial plan. 
• Read the bank's home loan contract carefully: Carefully read the home loan contract provided by the bank. If there are any unclear terms, you should proactively discuss directly with the staff for detailed and transparent explanations. 
• Determine a reasonable loan: When borrowing from a bank to buy a house, the bank usually only supports 70 - 80% of the house value, you need to have at least 20 - 30% yourself. However, experts advise only borrowing 30-40% of the value to ensure affordability and maintain financial stability, even when income changes or unexpected expenses arise. 
• Understand how to calculate interest rates: Understand how to calculate interest rates to choose a home loan package that suits your budget and abilities. Banks often offer many attractive loan packages with different interest rates to attract customers. Loan packages with low interest rates are not necessarily the optimal choice if they come with conditions that do not match your financial ability. 
• Choose a reasonable loan term: Although many people want to pay off debt quickly, short-term loans can be difficult, especially for people with average or low incomes. Currently, banks often support loan terms up to 25 years, helping to reduce monthly payments. Therefore, consider your financial ability to choose the most suitable loan term. 

4. Which bank has a loan package to buy land with quick procedures and good interest rates?

Currently, many banks offer land loan packages with quick procedures and preferential interest rates, helping customers easily own land. However, to choose the right loan package, you need to pay attention to the loan rate, loan term and accompanying conditions. 

SeABank is a great choice with simple and quick loan procedures. Loan rate and maximum loan amount are 100% of real estate purchase value, loan term lasts 240 months, making debt repayment more flexible and easier for customers. 

SeABank's team of experts is committed to supporting customers from the consultation and procedure stages until the loan is disbursed. In addition, SeABank also provides dedicated customer care services, helping you solve any problems that arise during the loan process.

Taking out a bank loan to buy a home is an important decision and should be carefully considered to ensure financial stability throughout the loan process. With the detailed information and instructions in the article, SeABank hopes you have an overview and are well prepared for a bank loan to buy a home in 2025. If you need to borrow money at SeABank, please contact Hotline 1900599952 or visit website sme.seabank.com.vn, our team of consultants will support you most enthusiastically and thoughtfully!