Applying for a housing loan can be tedious, overwhelming, and oftentimes a lengthy process. However, with the right prep work, you can speed up the process and increase your chances of getting approved.
You’re finally ready to take the big step and buy your first home. Your next course of action is to go apply for a home loan from a bank, right?
Well, unlike applying for a credit card loan or a personal loan, a housing loan isn’t as straightforward as it seems. The entire loan application and approval process can be a long and tedious affair, and worst of all – it’s going to require a huge amount of time and effort on your part.
It’s not just about research – having the right knowledge before you embark on your house-buying journey could increase your chances of getting your housing loan application approved quickly.
Check out these 7 important suggestions that could help ease your home loan application process. We’ll cover all the bases, from the basic suggestions you’ve probably skimmed through on most websites, to the slightly unconventional tips that will help increase your chances of a successful home loan application – and another step closer to owning your dream home.
1. Build your credit score
Before you even start browsing for the best home loans, you should work on building your credit score. If you don’t have a credit history, how will the bank know that you can repay your new home loan?
The easiest way to build your credit score is to apply for a credit card and ensure there’s activity on your card. Remember to repay your credit card bills in full and diligently! Other methods include paying off your student loans on time. Check your credit score by signing up for an account with CTOS – scores range from 300 to 850, the higher the better. The banks will check your CTOS score too!
2. Build a relationship with your bank
Once you’ve got your credit score sorted, next is all about building a relationship with your bank. This can be through opening a savings account, getting your monthly salary credit to your bank of choice, and managing your assets and investments through the bank. The bank will take all your assets into consideration when you apply for a mortgage.
An experienced banker can provide the best advice when applying for your mortgage, assist with the confusing paperwork and offer the loan packages that suit you. But the entire process can take several months as you’ll need to prepare documents and navigate through several appointments with bankers.
3. Do your research
There are so many banks in Malaysia, and all of them offer more than one home loan package. Take your time to do your research, find out the benefits of each home loan package to know if it best suits your needs. Do note that once you do find a suitable home loan package, it can take weeks or even months to get the process moving as it depends on the availability of the banks, not to mention taking leave or carving out time from your busy schedule just to go to the bank.
4. Ensure you have all the necessary documentation
This might sound tedious but check if you are eligible to apply for the loan in the first place – you can save lots of time here. Many applicants suffer countless rejections and appeals because they did not submit the correct documentation required – these include:
- The property booking form
- Identification documents (a copy of your IC or passport)
- Salary slips (up to 6 months)
- Bank and EPF statements
- Income tax receipt/tax form
Learn more about applying for a home loan here. Take note that approvals can take days, and you may need to account for appeals via adding income or getting a joint applicant.
5. Get a good real estate agent
A good real estate agent will be a reliable go-to source to help answer your questions – the best agents have specialised areas that will help if you have a specific location you’re eyeing. But it can take time to search for properties and speak with multiple real estate agents. Do remember that the real estate broker will charge you a standard commission (for the sale or purchase of land and buildings, the maximum commission fee is 3%) – you might not be paying the agent directly, but the price of the property the agent is selling to you most likely includes the agent’s commission fees.
6. Consider applying for a home loan via Maybank Home2u on MAE by Maybank2u
When you consider the five points above, the entire home loan process can take up to six months, or more if you’re new to the entire process.
Maybank Home2u is a one-stop solution that aims to transform and simplify the way we apply for home loans.
No more scrolling through multiple websites to search for loan packages or trying to find out if you’re even eligible to apply for said loan – or worse, driving to multiple banks to get all the info you need to make the right decision.
With Maybank Home2u, you can browse properties directly from Malaysia’s most reputable developers such as Sime Darby, S P Setia, Ecoworld, IJM Land, Mah Sing and many more. If you find it difficult to search for the real estate agent, Maybank Home²u is the best way to start your journey.
Everything you want to know about the property, including its layout and interest rate offers, are all listed in the app. You can also make enquiries about the property directly through Maybank Home2u and get assistance from a Maybank dedicated consultant who can link you up with the property agent and guide you with your application.
Found your dream home? Apply directly on Maybank Home2u to check your eligibility and see the actual interest rates based on your information – no paperwork necessary. It’s easy, just scroll down to “Check Eligibility” in yellow and fill in your details.
Here’s a pro-tip: You can adjust your down payment (either by percentage or amount) and tenure of finance to ensure that your monthly repayment best suits your needs. Sounds too good to be true? You can download the MAE app on the Apple App Store or Google Play Store and try it out yourself!
When you’re all set, you can apply and get your home loan approved directly on Maybank Home2u. Best of all, if your current salary is credited to your Maybank account, approval is as quick as 10 seconds. The entire process is quick and seamless!
You’re also assigned a dedicated consultant or banker that you can chat securely within the app about your home loan application.
Tap on “More” on the bottom right of the app, then tap on Home2u to get started! For more info, click here.