It is a milestone in everyone’s life when they collect the keys to their first home, an exciting feeling knowing that, at last, you have one foot on the property ladder. Equity soon accrues and you can look forward to that magical day when you make your last mortgage payment; a cause for celebration; if you think you are ready to make such a commitment, you are faced with the hurdle of home loan approval, which can be tricky.
Mortgage preapproval
In the real estate industry, sellers are not interested unless you have mortgage preapproval, which is basically that, given your income and credit status, in principle, the lender is prepared to accept the loan proposal. Whether you are viewing a house in Lakeville Residence or Kuala Lumpur, obtain mortgage preapproval before viewing.
Here is some useful information to help you come away with a mortgage pre-approval.
Check your credit score
There are online mortgage brokers that offer a free service for first-time buyers to find out their credit score; this should be the first thing you do and if there are any small outstanding loans, pay them off before the check. Click here for the importance of using an established real estate agent when buying a home. One thing you do not want is to be turned down when applying for mortgage preapproval, as this makes it much harder to get approval further down the road. Talk to the mortgage broker about checking your credit score and they can ensure that you go about this in the correct way.
Source an independent mortgage broker
Don’t go to a single lender, as they will try to sell you their products, an independent broker, on the other hand, has associations with many lenders and can therefore find a home loan that suits your lifestyle. As you would expect, there are indeed many financial products out there and it is only by approaching an independent broker that you can choose from a diverse range of loan products.
Check for government grants
Many nations have initiatives in place to assist first-time buyers; the Malaysian government, for example, does offer first time buyers financial assistance and Google can help you find out. It is necessary to help first time buyers, as the cost of purchasing real estate is very high and without government assistance, it would not be possible.
Making an offer on a property
Once you have found a property that you feel is affordable and suitable, the next step is to make an offer to the seller. The real estate agent would assist you with this, as they are familiar with the protocol when clients wish to make offers.
To summarise, the best way to acquire the right mortgage is to approach an independent mortgage broker and let the professionals find the best financial product that meets your individual needs.
