Congratulations for those who have decided to purchase their own homes. Purchasing a property is no easy feat, especially for first-time buyers. Whether you’re refinancing a mortgage or purchasing your own house, the financial transaction can take a toll and stress you out if you’re not ready to deal with them. Don’t let the pressures of financing mortgages get to you. Follow these 10 strategies for stress-free mortgage payments:
- Find a qualified lender prior to purchasing – Getting pre-approved for your mortgage is one of the most crucial things. Do your research carefully and find a qualified lender to guide you throughout the entire process.
- Choose the right mortgage plan and get insured – There are various mortgage plans with different down payment requirements, loan terms and interest rate structures. Finding the best plan mainly depends on your financial situation. Your monthly payments are higher if you go for a 15-year loan compared to a 30-year loan. Work with your loan officer to figure out the best strategy for your payments. You need to be comfortable with the monthly payment amount. Remember to get your mortgages insured for protection. Find out more about Malaysian mortgage insurance.
- Know how much the down payment is, and have enough deposit – Make sure you know what the exact amount for your down payment is, and that you have enough deposit on you to pay it off. If you can’t even afford the down payment, that’s a red flag.
- Be financially stable – Even when you’ve been pre-approved, it doesn’t guarantee that you’ll be approved when you finally decide to purchase a property. Lenders want to see their borrowers having steady income, so it’s important that you be careful with how you spend and save money, and avoid anything that could ruin your financial situations, like quitting or changing your job.
- Get rid of any debt – This should be done before you even find a mortgage lender. Clear off any existing debt of yours to ensure smooth mortgage payments. This includes overdrafts, loans, store cards, and credit cards. You can minimize your debts as much as you can if getting rid of them completely is impossible for now. The more debts you have, the higher your mortgage interest rates will be. Also, you’re less likely to be accepted by your lender if you have additional debts.
- Avoid taking out new credit- Regardless of how small it is, avoid taking out new credit at all times. Additional credit will take a financial toll on you and leave you with higher interest rates.
- Be prepared – Gather all the required documents and put them together in one place in case you urgently need them later.
- Ask questions If necessary, feel free to ask questions – if you’re unclear about your mortgages. You can ask anyone you work with on your mortgage, including the closing attorney, escrow agent, mortgage representative, and real estate agent.
- Make yourself available – Anyone involved with the deal should be able to reach you in case anything happens, so be sure to make yourself available. This will help you avoid unwanted consequences.
- Cut costs – When you find it hard to finance your monthly payments, the last resort is to cut costs. You can also find ways to add to your income.
The Malaysian property market is expected to recover in 2017, according to property market expert Siva Shanker. If you have yet to purchase a property, consider researching and reading more about buyer’s tips for the local property market before you start looking for house loans.