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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:
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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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