How to Apply House Loan

How To Apply For House Loan

In order to increase your probability of getting approved for a housing loan in Malaysia, then it’s going to be very important for you to know the proper way to go about the process of applying.  The first thing you need to do is determine just how eligible you are to be applying for a housing loan at all. This means any form of housing loan and not just a particular type.

There are different ways you can decide to go about doing this. One of the more hands on methods would be to simply contact the representatives of the lending institution you hope to go through. You can let them know about your needs and the representative can inform you of whether or not you’re qualified.

Another way to determine if you’re qualified for a house loan would be for you to take a careful look at different housing loan qualifications factors. The best way to do this would be to head over to the lending institution’s main website and see what qualifications they require.

In a lot of cases they’ll have special tools on the website to help you determine not only if you qualify, but for how much and at what interest rate. You’ll also get information as to loan tenure you’d be able to get. Keep in mind that all information you would get in this case would be estimations. The important thing is you could use these in negotiations with that bank.  

What required of you in order to qualify to apply for a housing loan in Malaysia:

  • You’ll have to be a resident of Malaysia or at least qualify as being a permanent resident of the country in order to apply for a house loan.
  • If you’re a foreigner, then you can also apply as long as you have valid proof of income and required identifications the bank would ask for.
  • You’ll have to be at least 18 years old.
  • You’ll need to not be older than 70-75 years of age at the time your house loan reached its maturity.
  • You’ll want to make sure you have good credit or an overall good risk profile in order to increase the odds of approval.

What are some important things to consider before applying for a house loan?

You’ll need to take a careful look at the amount of money you spend on a monthly basis compared to how much money you bring in. The purpose of this is to make sure you aren’t spending more than you make and that you are able to effectively save money. Monthly income versus expenses also plays a crucial role in credit risk.

You’ll want to make sure you stay in good standing if you have other current loans. This means making the payments on a consistent and timely basis. If you’re late with payments with other loans or show any kind of inconsistency, then this is going to hurt your credit score and severely impact your chances of approval.

Consider the eligibility of anyone you might be looking to have as a guarantor or co-applicant. Seeing as how this person would be sharing in the obligation with you, they’ll also be look at by the bank with the same scrutiny as you.

Besides the above you need to make sure you have the proper documentation and other important personal information. Most major lending institutions in Malaysia make it easy to apply or at least see if you would qualify online. If not, then you can go in for the purpose of seeing if you qualify before officially applying.