Real estate in Malaysia is truly beautiful, and there has never been a better time to buy than now!
First time homebuyers can be a little overwhelmed by the process. It is not only a financial but a life investment, and there is a lot to consider before you sign on the dotted line. That is ok, but it doesn’t have to be a grueling experience. Here are five financial tips that will help you along the path to becoming a first time homeowner in Malaysia. Resource gathered via StarProperty Real Estate Malaysia.
1. Get to know your credit score.
Your credit score plays a huge part of the process to home ownership. It determines mortgage rates, interest rates, down payments and even the term length that you will be offered. This is a key and critical part of it all, and if you have a low credit score or bad credit you may want to consider fixing it before proceeding. Remember, your credit score can change several times a month, so keep an eye on it.
2. Start the process of clearing your credit 6 months or more ahead of starting the home buying process.
Clearing your credit is not an overnight process, and knowing what realtors, banks, loan associates and the like are seeing when they check your credit report is also very important. Your credit score and your credits report are two different things. Make sure that you have cleared any derogatory marks or collections accounts from the report.
3. The longer you have had credit the better off you will be.
This and the length of credit on the report as well as the amount of credit that you are using will all play key roles in you getting a good interest rate. Your credit report goes hand in hand with your credit score to getting you a nice down payment agreement. Again, they affect all of the numbers at the end of the day.
4. Make sure you evaluate all of your liabilities as well as your needs.
You can do this easily by tracking your spending for about 3 months or so. If your numbers are good on your report and scores then it is easy to get excited, but don’t get ahead of yourself. There is still a lot to be considered. Think now about how much money you spend. What is your monthly budget? How much do you have saved? How much will be needed for a down payment, and what will be going out monthly after that? You have to think beyond just purchasing the home to being able to sustain it, buy insurance, tend to any surprise repairs, deal with life emergencies and maintain your monthly obligations already in place. You cannot have more going out than is coming in.
5. Look at your income from the lenders point of view.
What this means is you need to get the idea of how the basic mortgage lending process goes. For example, people who are commission only sales people or self-employed professionals are viewed as a more high-risk loan candidate. There professionals may even have difficulty getting a home loan in today’s markets if they cannot present at least 2 solid years of back earnings.
Quite simply, it all comes down to your income, credit and credit scores as to how easy or tough the home buying process is going to be. If you make it a point to focus on your credit score, report, lowering credit usage and extending the amount of time you have had credit then you will get the best terms and rates available.