Tip for first house purchase

Tip for purchasing your first house....
Everybody has a dream to own their own house at a young age. Purchasing a first house is a major decision need to be done in a lifetime. With the internet search, all information regarding house ownership is in your fingertip. Here a some tip for to be share:

1. Plan Ahead for purchase your first house.  

Beside 10% normal deposit, you also need additional 5 to 10% for SPA or valuation fees.

• Do your own calculation.

With internet, all information is available. Calculate how much commitment that you can afford for purchasing house. Don't over commitment. There will a problem in the near future. 

For the simple calculation, just click the link in available in this blog. The link offer the calculation and also the  

current rate offered by Malaysian Commercial bank. The rate information is nearly accurate at the current situation.

Apply rules of Thumb for your commitment

DSR = Net Income / Existing commitment + new commitment

* Less than 50% = comfortable level

* %51 to 70%    = marginal level

* 71% to 85%    = high commitment

* 86% to > 100% = over commitment.

Maintain at maximum marginal level.

• Prepare full documentation before submitting loan application

Prepare at least 5 set of documentation. Full documentation could avoid long processing time

• Shop around for Better rate.

Try to apply as many application as posibble. Find the better bank that could offer better rate.

Insist for the lowest rate as posible. Do not rush to sign Letter offer. Read through the LO before make your decision. 

Last tip. Call me if you need assistant... Thank you