What should I do if I want to get a loan for a second-hand house?
Last updated: 6 Aug 2025
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One question that professional real estate agents often hear when selling second-hand homes to clients is whether a house can be financed with 100% financing, or what the appraised value of the house is. Deep down, buyers often ask because they're concerned about whether they can get a loan without having to come up with the difference, or whether they'll have enough money left over to fund repairs and additions.
Lin never guarantees clients that they'll definitely get a loan (though, in the past, many clients have gotten loans above the home's value). Based on her experience selling second-hand homes to clients, Lin would like to offer some perspective. When it comes to banks granting loans, they primarily consider two factors:
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1. The borrower (the borrower's profile)
Banks will look at the borrower's income, debt, ability to repay debt, financial history, financial evidence, and credit bureau credentials. This is crucial. Let's be honest. If someone asks to borrow a large sum of money from you, even for a long term, they'll check their credit history.
Some people say they have a history of borrowing. (Delayed repayment) But why can I buy a car on installments? I'd like to point out a few things. The legal ownership of the car (real estate) we finance through a finance company is the finance company. We are merely the owners. Therefore, getting a car loan is easier.
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2. The house (real estate) you buy
If you have a good profile, the bank's appraisal value is crucial. When the bank comes to appraise the house (actually, the appraisal company at the bank), they will consider the purchase price, the price compared to the market price, the condition of the house (new/dilapidated), any additions, the age of the house, and some furniture.
Many people who have read this far may see opportunities to increase the loan amount. However, Lin would like to point out that banks have a checklist. Approving a loan for a second-hand house of approximately 85-90% of the purchase price, or the borrower's capabilities, is a measure that blocks various methods of borrowers trying to increase their loan amount.
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Lin's advice is that now that we know these two factors are important, we should prepare ourselves.
1. Prepare yourself. Before Applying for a Loan
1.1 Establish Saving Discipline
Let's say you want to pay off a 2.5 million baht home loan, with an estimated monthly payment of 17,000 baht.
We should practice saving this amount for at least 12 months in an account. This will demonstrate to the bank that you have the ability to repay the loan. If the bank doesn't approve your desired loan amount, you'll still have some money available to cover the difference.
1.2 Establish sound financial records.
Keep a regular check on your bank account. Maintain a balance of at least the amount you need to repay each month. Never withdraw all your money before the end of the month for the same reason: financial discipline.
1.3 Avoid excessive credit cards.
This will be perceived as having a high debt capacity, reducing your approved credit limit.
1.4 If you have any outstanding debt, pay it off before the loan is paid off.
Similar to point 1.3, even a few thousand baht per month in debt can lower your approved credit limit by hundreds of thousands.
1.5 Credit is a personal matter. Unless absolutely necessary, avoid lending money on behalf of others. This could affect your credit history, and it could take years to clear this up.
1.6 Consider ways to increase your income. Owning a home means you'll have a burden for the next 30 years.
1.7 Prepare the difference in the price if the bank approves a home that's lower than the purchase price, and set aside money for repairs. We don't recommend relying on the price of a house.
1.8 If necessary, you may need to find a co-borrower.
___________________________________________
2. Factors in the home you're buying
2.1 Choose the home and location you really want to buy. Make a careful decision before buying, as you probably won't be changing homes every year.
2.2 Choose a home priced within or below market value. Chances are, the bank's appraisal value will be equal to the home's value, and after deducting these costs, you won't need to factor in a large difference.
2.3 Choose a home that's in good condition and requires minimal renovation costs if you haven't budgeted for this (unless the home is significantly lower than market value and you're certain you'll be able to borrow more).
___________________________________________
Thank you for the great information from HomeDDCenter.
Lin never guarantees clients that they'll definitely get a loan (though, in the past, many clients have gotten loans above the home's value). Based on her experience selling second-hand homes to clients, Lin would like to offer some perspective. When it comes to banks granting loans, they primarily consider two factors:
___________________________________________
1. The borrower (the borrower's profile)
Banks will look at the borrower's income, debt, ability to repay debt, financial history, financial evidence, and credit bureau credentials. This is crucial. Let's be honest. If someone asks to borrow a large sum of money from you, even for a long term, they'll check their credit history.
Some people say they have a history of borrowing. (Delayed repayment) But why can I buy a car on installments? I'd like to point out a few things. The legal ownership of the car (real estate) we finance through a finance company is the finance company. We are merely the owners. Therefore, getting a car loan is easier.
___________________________________________
2. The house (real estate) you buy
If you have a good profile, the bank's appraisal value is crucial. When the bank comes to appraise the house (actually, the appraisal company at the bank), they will consider the purchase price, the price compared to the market price, the condition of the house (new/dilapidated), any additions, the age of the house, and some furniture.
Many people who have read this far may see opportunities to increase the loan amount. However, Lin would like to point out that banks have a checklist. Approving a loan for a second-hand house of approximately 85-90% of the purchase price, or the borrower's capabilities, is a measure that blocks various methods of borrowers trying to increase their loan amount.
___________________________________________
Lin's advice is that now that we know these two factors are important, we should prepare ourselves.
1. Prepare yourself. Before Applying for a Loan
1.1 Establish Saving Discipline
Let's say you want to pay off a 2.5 million baht home loan, with an estimated monthly payment of 17,000 baht.
We should practice saving this amount for at least 12 months in an account. This will demonstrate to the bank that you have the ability to repay the loan. If the bank doesn't approve your desired loan amount, you'll still have some money available to cover the difference.
1.2 Establish sound financial records.
Keep a regular check on your bank account. Maintain a balance of at least the amount you need to repay each month. Never withdraw all your money before the end of the month for the same reason: financial discipline.
1.3 Avoid excessive credit cards.
This will be perceived as having a high debt capacity, reducing your approved credit limit.
1.4 If you have any outstanding debt, pay it off before the loan is paid off.
Similar to point 1.3, even a few thousand baht per month in debt can lower your approved credit limit by hundreds of thousands.
1.5 Credit is a personal matter. Unless absolutely necessary, avoid lending money on behalf of others. This could affect your credit history, and it could take years to clear this up.
1.6 Consider ways to increase your income. Owning a home means you'll have a burden for the next 30 years.
1.7 Prepare the difference in the price if the bank approves a home that's lower than the purchase price, and set aside money for repairs. We don't recommend relying on the price of a house.
1.8 If necessary, you may need to find a co-borrower.
___________________________________________
2. Factors in the home you're buying
2.1 Choose the home and location you really want to buy. Make a careful decision before buying, as you probably won't be changing homes every year.
2.2 Choose a home priced within or below market value. Chances are, the bank's appraisal value will be equal to the home's value, and after deducting these costs, you won't need to factor in a large difference.
2.3 Choose a home that's in good condition and requires minimal renovation costs if you haven't budgeted for this (unless the home is significantly lower than market value and you're certain you'll be able to borrow more).
___________________________________________
Thank you for the great information from HomeDDCenter.
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