A mortgage loan is probably the biggest and longest debt you’d have to carry your entire life. For some, making a mortgage is just a manner of getting a loan and moving to another house and another loan in a matter of few years time. To others, the mortgage loan is final and they settle in the house that they have learned to love and the community they decide to live in.
In Malaysia, it is highly important that you get the right mortgage whether you are in it for the long haul or on a transition period. This is one thing to consider to avoid a property investment pitfalls. After all, this loan will only stick with your name if you have a bad record so you had better be making it a clean deal through and through. AND you would have to achieve that at ideally the least expense possible or at the most convenient way possible for you financially.
So we’ve gathered a list of things you should and should not do when you’re applying for a mortgage.
- Consult a mortgage expert. They may be a mortgage lawyer or a mortgage consultant. They are people who are in the know of the ins and outs of the trade and are likely to give you unbiased advice and opinion on all your queries that concern getting a mortgage loan. Going to your mortgage lender/ broker/ real estate agent may not be the right thing to do since they are more likely to give you advice that will benefit them. They can absolutely help you make the right choice on the type of mortgage to get.
- Go to different mortgage lenders. Shop around for the best mortgage lender in the area. Consult their representatives to know what’s in their offer for you and compare. You are more likely to make a better choice if you know what you’re getting and missing from the other lenders.
- Read, read, read. Ask if there’s something you don’t understand. Read a condo review. Read the business news. Read your community outpost. Your mortgage lender will give you a good view of how your mortgage contract is going to look like. Make sure you understand every bit of it and ask about whatever you don’t understand. Do not let your ignorance be used against you.
- Overestimate your capacity. This is where a lot of homeowners fail. Always make sure you know how much you are capable of – for the long term. Even when the initial pre-approved loan says you can, only you can actually tell if you can or cannot pay for it.
- Forget to save up. You’ll never know when you’ll be in a bad financial situation and it is always advisable to have some sort of savings to turn to for your mortgage and other bills should you find yourself in this kind of situation. This is one mistake most first-time investors make, so don’t fall for it.
- Disregard your other credits. Your personal credits and loans should still be taken into consideration. They will not only affect your credit score and history but will greatly affect your overall capacity to pay for your mortgage loan. Don’t let your credit card shopping put you at risk of foreclosure!