There are many milestones in a person’s life, and none more rewarding than buying your very first property. It is usually the result of a lot of hard saving, a good mortgage, and time well spent searching for the right property, and the moment you sign on the dotted line and contracts are exchanged, you are the proud owner of your dream home. If you are fast approaching the time when renting is no longer an option, here is a guide to buying your first home.
- Affordability – While it would be lovely to search for that sprawling home with a pool in the garden, one must be realistic, and if you and your partner sit down and take a good look at your joint incomes, then you can begin to calculate how much you could both put aside for a mortgage. People upgrade over the years, as their financial situation improves, and every time you do upgrade, you should make a tidy profit on the sale, which can go towards the deposit on the new home. The best suggestion if you want to apply for home loans in Malaysia, is to take a look online and talk to a reputable bank, preferably one that specialises in first time buyers, and with their help, you can find a mortgage that suits your lifestyle.
- Borrow More than you Need – The mortgage will be spread over 25-30 years, and by borrowing a little extra, you can do a few necessary improvements when you move in. The lender is not too concerned about this, as the security is in the house, and this is a lot cheaper than a personal loan, so if the windows and doors need replacing, mention this to the bank and they would more than likely allow you to add to cover that.
- Moving In – When you do finally find the house you like, and seal the deal, remember there will be a significant cost in furnishing the home, and then you have the removal costs, so it is a good idea to save some of the money you earmarked for the deposit, as you will certainly need it. There will be many fixtures and fittings, such as curtain track and wall decoration, and this will require a budget.
- Shop Around for a Mortgage – It makes no sense to accept the very first offer from a lender, and as there are many different types of mortgage, you want one that suits your needs. Some home loans, for example, allow you to make larger monthly payments without incurring charges, and you can also have your account overdraft configured to ensure you never miss a payment. The Internet is a great source of information, and by searching online for mortgage lenders, you can receive what is called ‘preapproval” within minutes. This does not obligate you to the lender in any way, it merely states that, based on the information you have given, and subject to the submission of relevant documents, a loan for a specific amount to buy a property would be approved.
You could, for example, get 3 preapprovals online, and when you have narrowed it down to the best deal, you can take it one step further, and with all of the above in mind, that first home will soon be yours.