Friday, September 09, 2005

Getting a Home Loan: The Process

These are the steps of getting a home loan.

1. Before anything else, get your credit reports from The Credit Bureau, Bank Negara Malaysia. Find out what the banks read about your credit records. It should take about a month for you to get your credit report from the date of your request. A good credit records is helpful in getting a cheaper for home loan.

2. Identify your property.

3. Explore more sources of financing for your home loan, i.e. banks, insurance companies, Building Society, KWSP/ EPF, etc.

4. Make a decision on the type of home loan that fits you, i.e. flexible repayment, low rate fixed term, Islamic, etc.

5. Submit application to the financier of the home loan. The financier will evaluate your eligibility and ability to repay in accordance to its own guidelines. Get your letter of offer. Negotiate a low interest rate if you have a good credit records and are buying a house at a good location built by a reputable developer.

6. Once agreed on the S&P, signed and pay down payment. Depending on situation, you may need to sign the S&P first before your can get your letter of offer from bank.

7. Sign and submit the following documents to your home loan financier.
a. letter of offer
b. S&P agreement
c. valuation reports (if required)

You will have to wait for your lawyer to complete the remaining steps until disbursement of your home loan from your financier.

i. Your home loan financier will verify the documents and instruct lawyer to prepare documents and to check title of property
ii Lawyer to obtain undertakings of various parties
iii. Get signatures from you and the bank officers on ??
iv. Submit documents to land office or high court for registration, stamp office for stamping of home loan
v. Submit registered documents/ title to financier (original) and you (copy)

8. Bank disburse home loan to the seller or developer