Buying a house is something everyone aspires to one day. However, to own your dream house, you must scrutinize and understand every little detail that can help you get there. So if you ever ask yourself the question “Apa jadi if I want to buy a house, but I don’t know how?” here are our recommended step-by-step guide on how you can do just that!
Step 1: Set Up Your Budget
Of course, when determining whether you can afford a home or not lies entirely on your budget. Financing is an essential aspect to purchasing, home buying included.
In addition to that, you also have to consider all your other commitments. Assets such as car, insurance and personal entertainment are a few examples of payments that the average adult could pay for.
Luckily for you, there are a bunch of first buyer home schemes in Malaysia. Check out these property Malaysia home schemes!
Step 2: Check your Credit Score
Your credit score is affected heavily by your spending habits. Owning a credit card acts as a double-edged sword, and can lean in either good or bad directions. For example, when you use a credit card wisely, you can build your credit score and hence get loan approvals easier.
However, if you use it without evaluating your income beforehand, you are at risk of building more than debt than you can afford to pay.
You must check your credit score before anything else!
Step 3: Double check your Budget Again (Monthly Repayment Interest Rates)
Before continuing to survey homes according to your general budget, make sure you check on the monthly repayment interest rates as well. According to CIMB, for a loan application of say RM100,000, the monthly interest rate is 3% for the span of 30 years.
Keep in mind that the interest rate is of importance here, and that you need to ensure that you have enough to pay for it.
Step 4: Survey Available Homes That Fit YOUR Budget
Now that you’ve ascertained your budget and credit score, it’s time to get looking. Some say this may even be the best part of looking for a home. It’s time to browse through all the home catalogues you can find, surf the internet and scout over the neighbourhoods.
Familiarise yourself with ALL aspects of the home, not just the design of the home itself, but it’s location, area and residents too. Many factors come into play when buying a new home, so do take as much time as you want before settling.
Step 5: Hire a Lawyer
Hire a lawyer to ensure that all the fine details of the contract is conveyed properly to you. You could argue that you could directly deal with the property agent themselves, but here’s the thing: NOTHING beats professional assurance.
A professional lawyer can:
1. Ensure that all documents are safe and verified
2. Convey jargons stated in any form of contracts in layman terms
3. Protects you from getting taken advantaged from unscrupulous brokers
Step 6: Sign the Letter of Offer
Once you’ve examined the fine details of the contract, it’s time to let your developer of choice know that you’re interested in purchasing their property.
Signing the offer letter also means handing in the agreed upon earnest deposit to kickstart your purchase. However the deposit is usually paid in 2 or 3%, before finally moving on to the remaining amount after you sign the sales and purchase agreement (SPA).
Step 7: Sign SPA
You’re near to the finish line now, next up you have to sign the SPA form. After signing the letter of offer, most banks would give you a period of two to three weeks to sign your SPA form.
If you’ve been following this guide closely, then you know that we encourage you to hire a lawyer. This part is also where lawyers come in handy, as they will draft the SPA form aligned with the interests of both the buyer and the seller.
Step 8: Sign Loan Agreement
Signing the loan agreement is the pivotal last step to the process of purchasing your home. You might be wondering, how does the loan agreement differ from the SPA. It is quite simple actually, the loan agreement is the deal you make with the bank, whereas the SPA is the deal you make with the developer.
Step 9: Live in your New Home!
Now that you’ve dealt with all the complicated stuff, here comes the fun part. So just sit back, relax and enjoy engaging in your new house!
Looking for your next big home purchase? IQI can help you find the ideal home for YOU! Fill in the form below and let’s get talking!