Buying a house is an exciting event. It will probably be the biggest purchase you will ever make in your life. Understanding the steps involved in securing a housing loan will help you save time and avoid uncertainty and anxiety.
Buying a House
Buying a house is a major step, so it deserves careful thought and planning. If you are buying a property under construction, you should check the background of the developer. You should ensure that the developer:
Has a valid license issued by the Ministry of Housing and Local Government which is still in force (not expired)
Has a valid advertising and selling permit issued by respective local authority which is still in force
You have the right to enquire from the developer, information on license and permit. You can also refer to the Ministry of Housing and Local Government for further clarification. A developer with a good track record reduces the risk of the project being abandoned.
What can I afford?
Before you commit to purchase a property, you should first work out a budget to help you determine how much you can afford and the ceiling price on any property you may wish to buy. As a guide, your monthly commitments on paying instalments for your house, car and other payments should not exceed 1/3 of your gross monthly household income.
Your source of funding can be all or any combination of the following:
Withdrawal from Employee Provident Fund (EPF) account
Loan facility from a financial institution
Most of all, not all the developer’s project will be finance by banks. Therefore, it is good to contact our mortgage consultant to know which bank is financing the project.