Buying a house can be so much fun and full of excitement but at the same time it’s can be nerve wrecking and stressful too.
Most people buy a house to start a family, a new start and have a place to call home to create new memories and some called Home is where the heart is. But, the journey of buying a house can be a bumpy road if you don’t have the proper knowledge about it.
Today, we at MalaysiaHousingLoan.Net will share a few tips and tricks before buying a house.
1. Evaluate Yourself
Stop looking for a new house or talking to anyone first, but one thing you need to do is evaluate yourself first.
Start by calculating how much cash you have in hand, list down like this.
Cash in the bank A : RM30,000
Cash in the bank B : RM20,000
EPF Account 2 : RM40,000
Total Cash I have to buy a house : RM90,000.00
2. How Much You Need To Buy A House?
Okay, now you know how much cash you have. The next step is to calculate property price that you can buy.
While, the estimate of all cost you need when buying a house is about 17% from the Purchase Price.
So, let’s do a backwards calculation to know how much the property price that you can purchase.
(RM90,000 x 100) 17 = RM530,000
So, the maximum Purchase Price You Are Entitled is RM530,000.Meaning, you can go any amount of property price as long as it is lower than RM530,000.
Note: 17% is including 10% down payment, SPA And Loan Legal Fees, Stamp Duty and as well as Valuation Fees.
3. How Much Loan You’re Eligible?
To calculate your eligibility for Home Loan can be a bit tricky but for the sake of general idea, you can just do a simple calculation.
The calculation will need Net Income, all commitments Instalment and the new home loan instalment.
So How To Calculate?
Net Income : RM5000
The allowable commitments amount are RM5000 x 70% = RM3500
Your commitment should not exceed RM3500 per month or 70% from your net income including the new home loan instalment.
If the commitments are :
New Home Loan : RM2200
(Instalment based on RM530,000 x 90% = RM477,000, 35 years, 4.30%)
Existing Commitment :
Car Loan Instalment : RM600
Personal Loan : RM650
Total Commitments : RM2200+RM600+RM650= RM3450
DSR Over Net Income : RM3450/RM5000 x 100=69% ( Ideal!)
Note: Debt Service Ratio (DSR) 70% is the most common calculation percentage used to calculate eligibility.
However, there is exceptional DSR for certain group of income. Some bank will only takes 50-60% DSR for income less than RM3-4k and some will takes up to DSR 80%-85% for income above RM8-10k per month.
* For all government staff, the calculation can be slightly different due to they may have commitments deduction in the pay slip. It is best to contact us for the calculation.
Bear in mind, this is just a preliminary calculation, to get an accurate calculation, please get in touch with our Experienced Consultant at 012-6946746 or Contact Us at MalaysiaHousingLoan.net.
4. Print CCRIS Report
Get your CCRIS report print out before go-ahead to purchase a house.
Now that you know everything about yourself financially, but there is one more thing that can screw up the whole thing, your CCRIS report!
If you have not paid your commitments on time, it will reflect in your CCRIS report and this will jeopardize your home loan approval.
Overconfident that your CCRIS report is flawless is not enough. There are many cases that we faced where clients are surprised with their CCRIS conduct.
One thing you need to know is, once your application is rejected, it’s so difficult to get it approve again.
5. You’re Ready!
Now that you’re ready to buy a house.
You can start talking to us MalaysiaHousingLoan.Net seriously. We will give more in-depth advise on how to negotiate with the seller, agent or banker. We will provide you with the most valuable and kick-ass advice.
We will share with you:-
-How to negotiate with Seller or Agent?
-How to identify that your property agent is a registered agent?
-What should you do before putting down your booking?
-What additional clause you should add to your Letter of Purchase before agreeing to buy?
-What documents agent/seller should provide when putting down your deposit?
– How to avoid being tricks by agent and seller?
– Why you shouldn’t pass your income documents to property agent?
-Know your right! You don’t need to appoint Seller or agent lawyer as your SPA lawyer.
And Lots More.
If you want more Tips and Tricks for buying a house or applying for a home loan, don’t forget to call us at 012-6946746.