Do you want to buy home? Buying a house requires a checklist and this is the tips before buying a home :-
1. Strengthen your credit score. The higher your credit score mean lower your down payment and monthly payments. Improves your credit score by pulling your credit reports and ensuring you;re not being unfairly penalized for old, paid or settled debts. Stop applying new credit before apply for home financing. Keep the moratorium in place until after you close on your home.
You must check with your bank whether your credit score is good or known. In Malaysia, you need to get CCRIS and CTOS report. If the report is bad, you need to improve it.
2. Figure out the house that you can afford. Get a home that’s financially comfortable. Improve chances by trying on financial obligation long before you sign the mortgage papers.
Calculate your salary and income . Compare with installment that you need to pay within the period. Avoid long term period as the banker will get more profit from you. Don’t make loan if you are not confident to settle it in their period time.
3. Saving your money on down payment and closing costs. You’ll need to save about 3.5 percent to 20 percent down. You also can negotiate to have the seller pay a portion of the closing costs. It is important to have down payment as most seller will give priorities for those buyer with down payment. It is important too if you want to buy using bank loan. The downpayment needed as most bankers don’t give full loan.
4. Build a healthy saving accounts. You need to make priority for the down payment and closing. Lender want to see that you’re not living paycheck to paycheck. Do some investment such as fixed deposit, unit trust and other. It is important as banker also look at your investment.
5. Get preapproved for a mortgage. Getting financing in place before you walk through the first house.
6. Buy a house you like that make you happy for your life. It is important as you need to live there. Always do some research before buy it. House ain’t cheap goods. It means a lot for your life
Source :- Bankrate