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First Time House Buyer's Guide

Sub Sale

RealEstateAgent.com.my understand that buying a house is one of the most important financial decisions that you will make in your life. This is why RealEstateAgent.com.my are committed to guiding you step-by-step, answering all your questions along the way, to ensure that your experience is as pleasant and successful as possible. In the pages that you will find information that will help you to better understand the buying house process. This summary is intended as a general overview of a typical house purchase, and to identify the typical procedures followed. Read on and you'll see that realizing your dream of having your own house is easier than what you perhaps imagine.

Preparing Yourself for the Buy

Your Savings
It is important to develop a financial plan so that you not only save money for the down payment, but for other costs that will come along later like the credit check, the mortgage application and the closing.

Your Credit
Having an established credit history is an important step in a smooth house buying process if you plan to do the purchase by mortgage. Pay your loan on time, limit your debt, reduce the amount of credit cards you have and use them responsibly. It is also important to review your credit report - a record of past and current debt that states when, how and if you paid.

Your credit history is one document that gives the mortgage lender confidence in you. The better your credit history, the better your credit score; and the better your credit score, the higher the trust level of the lender, which may translate into more mortgage options for you.

The best approach in buying a house is to gain an understanding of how a house is financed, the process of obtaining financial assistance toward your house ownership dream and the costs that you should be prepared for. There are crucial elements to be aware of: (1) Mortgage Pre-approval, (2) the Down Payment, (3) Mortgage Options and (4) Closing Costs (legal fee and stamp duty).

Mortgage Pre-approval

A pre-approval is a simple calculation that tells you the amount you'll be able to finance through a loan and what your monthly payment will be. A pre-approval also provides the "seller" some comfort that you have the financial means to purchase their house.

Once you know the amount of money the bank will lend you, you will need to determine how much cash you should save for the down payment. This will help define the types of houses that are within your budget. Bear in mind that your monthly costs not only consist of mortgage payments, but will also include at a minimum real estate taxes, house owner's insurance and utilities.

Securing mortgage financing is an important step in the real estate purchase process. There are lots of options to explore to find the fit that's right for you. One step you can take towards figuring out how much you can afford to make your house search more effective, even before contacting a financial lender, is visiting to to learn more details regarding house financing and to utilize the Real Estate Mortgage Calculator. Additionally, your Real Estate Agent Professional can help you in making sense of the financing process and guide you in sorting through your options.

The Down Payment
A down payment is generally the money you pay up front toward your new house. Typically, the more cash you pay as a down payment, the less you will have to pay each month on the mortgage, and the lower the interest costs will be over the life of the mortgage. Many people make a down payment of 5, 10 or 20% of the sales price of the house, but the right percentage for you depends on many factors. There also are certain loans available for down payments of under 5%. One thing that is certain is that saving the money for the down payment can be a challenge. This is why there are so many mortgage options available and a Real Estate Agent Mortgage Professional is a good resource to help you choose the one that best corresponds to your personal situation.

The Mortgage
The types of house financing options available to you toward the attainment of your new house are varied, depending on your personal financial situation and unique needs. The best resource available to you in determining your financing option is your Real Estate Professional who can guide you through contacting a financial lender and attaining a Mortgage Pre-approval, to help you in gauging what you can afford to spend on a house and financing available to you. 


Closing and other additional costs
Closing is when ownership of your new house is officially transferred from the seller to you. Sometimes sellers will pay closing costs. If not, you need to be prepared to pay this additional cost, which can range to be an additional two to five percent of the house purchase price. These costs can vary from state to state. Your Real Estate Professional can assist you, and guide you in this step towards achieving your house ownership dream.

Some other cost that you can gather more information on, as well as general estimates, to prepare your personal finances, typically include: 

- Good faith deposit: This deposit shows the sellers that you are really interested in buying their house and that you are willing to make them an offer. This deposit can vary between 1 and 10% of sales price depending on the market and can be applied to the down payment.

- Mortgage application and credit report fees.


 

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