Getting an affordable house loan is a very reasonable way to purchase a house, or a piece of property in Malaysia. This is especially true if you currently don’t have the cash or the liquid assets to buy the house in full. A house loan provides you the flexibility to pay for the property in the duration of years. This setup won’t put too much pressure on your family and your finances. However, applying for an affordable housing loan scheme in Malaysia is easier said than done.
How Do You Qualify For A Home Loan? First of all, you have to understand that the most common providers of home loans in Malaysia are banks. To avail of a housing loan scheme, you have to apply and show the bank that you are more than capable to follow the terms of agreement. Usually, the bank will look into the following factors about you: age, income bracket, job stability, credit history, other sources of income, other debts you may have, and the size of initial deposit you are able to put down. You are going to provide these information when you fill up the series of application forms that the bank gives you. If you fit the bank’s criteria, they will give you the green signal to purchase the house you are dreaming to own.
What To Do Before You Apply For A House Loan Always keep in mind that not all loan applications are approved. That said, you need to make sure that you meet the requirements before you send in your application form. Below are some of the things you should do prior to your application:
1. Lower your other debts to a minimum. If you have huge debts payable to several creditors, the bank will have doubts on whether you will be able to settle your obligations if they provide you with a house loan.
2. Fatten your savings. If you have a sizable amount in your savings account, the bank will look at it as a good sign. It creates the impression that your finances are sound, and that you can easily handle your installment payments. Sometimes you will be asked where your savings come from and what you intend to do with it. So be ready with your answers.
3. Check your credit score and report. Your credit score is one of the most important things that banks look into when deciding if you are fit to avail of a house loan. Applying for a loan without checking your credit score is a huge mistake you don’t want to make. Keep in mind that if you have a bad credit score, you have less chances of getting approved. That’s why, you need to check your score to see if it’s compatible with the loan you are going to apply for.
If you follow all the advice mentioned above, you have better chances in getting the home loan you want. You should also look into the specifics of the loan, before you sign the contract. Read every clause in the terms of agreement to make sure that you don’t miss anything. The general rule is that you should look for a loan that offers up to 30 years of repayment period, has low interest rates, and has free standing instructions on monthly installments.