Some Mistakes To Be Aware Of When Applying for A Home Loan
It is said that a house is the biggest investment a man can have. Yes, it is really a big step when one decides to buy a house. Most of the time, this is done on an instalment basis that will last for decades. There are also times when one can buy this in cold cash, however, this will surely drain their savings. The most convenient way is to apply for a housing loan. However, not all the time that you will be approved of this. Some end up rejected because of some mistakes they could have avoided, had they been warned. For a list of available properties to consider for purchase, check out Edgeprop!
What are these common mistakes? Check this out:
1. Using all the savings for the down payment
Even if you will be approved of a loan, you will still need to prepare at least 20% for the down payment. Thus, the amount of money will depend on the price of the property you plan to buy. Like for example if you eyeing one of the units of the Marc Residence or Verve Suites, then you need to choose one that you can afford without draining your savings. Using your savings for the Marc Residence KLCC or Verve Suites KLCC is not a good idea as unexpected expenses always happen. You might only end up selling the equity of your house.
2. Most of your monthly income is used for the housing loan
Yes, it is great to own your house, but then again, you also need to consider other things like the education of your kids, medical bills and so on. If most of your income is used to pay the monthly amortization, what will be left for the other expenses? Let’s say you’ve decided to buy property verve suites, it will take more than a decade to pay for a house! Ideally, you should just allot about 30% to 40% for the housing loan. This you must choose the property wisely.
3. Not checking out other options
Nowadays, there are already so many entities that offer home loans. This is why, if you are planning to apply for one, you must check all your possible options. Note that all of them differ in terms and in interest rates. Not checking your other options is definitely not a good idea. Yes, there is a chance you end up in the best option right away but that is quite rare, right? If you want to end up with the best deal, you have to check all your options.
4. Focusing too much on the cost of the house and not considering the expenses of living in it
Another thing to consider when planning to buy a house is if you can afford to maintain it. Note that the moment you live in your house, your expenses in maintaining it will start as well. Of course, this does not mean that you should not just buy your own house, as that is still the best option. However, see to it that you carefully plan in choosing the type of house your money can afford. Always consider that it will take years before you can fully own its equity.
There are still a number of things that are not listed here. But the bottom line is, you have to be cautious when applying for a housing loan. Your goal should not be to be approved, but to find the best option. There are so many banks and other entities out there and finding one that will give you a loan is not the biggest hurdle here. After all, each of them is looking for a client. Instead, you should seek out your best option considering some factors like the interest rate, the terms and so on.
Yes, there are so many things to be considered actually as your obligation does not end the moment you are approved with the loan. Rather, that is just a start of something that is a bigger responsibility in which you need to deal with for even more than a decade.
But of course, since it is your desire to own a property, you should not be looking for excuses not to push through with the plan. Instead, you have to find something that is realistic. Yes, realistic in a sense that you can really keep up with your monthly obligation in time. Banks are not the most forgiving when it comes to unpaid dues. They always stick to their policies and your property might be foreclosed. So, see to it that you will be capable of keeping up your monthly dues later. So before you decide to buy property verve suites mont kiara or buy property marc residence, you must make sure you have proper financial planning first.
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