In parallel, you need to prepare the budget for a Mont Kiara new condo or Mont Kiara apartment, to see how much you can afford to spend on a house. As in most cases, the buyer does not have all the money needed for a home, he uses a loan. As a result, the budget takes into account the own money (the necessary advance at the bank is, in principle, 15%, and at the First House 5%) and the loan that can be contracted, depending on income. The amount thus obtained must cover the price of the house, but also other expenses such as legal fees, stamp duty, insurance, credit fees, mortgage-specific fees and notarial deeds. Plus real estate agent commission, if applicable.
Beware of bank credit
To what extent do you owe? It is recommended not to go with the degree of indebtedness (bank rate from family income) to the maximum, especially if the income is not very high, given that, in general, home loans are granted with variable interest and are on time long.
What happens if you owe up to the maximum you can afford (monthly income rate) and the interest rate increases?
The rate also increases and this will become an unbearable burden. So, you have to take a safety margin. The bank is obliged to present you with a negative scenario (an example of calculation) in case the interest rate increases by 0.6 percentage points. There are banks, however, that present this scenario for increases of 2-3 percentage points of interest, respectively the impact of this evolution in the bank rate.
Applying for bank financing does not have to wait to find a home. Things can go in parallel, so that, when you find the house, you have the approved financing.
Documents required signing the contract
When you have decided which house you want to buy, you must make sure that the owner has all the necessary documents for sale (deed of ownership, tax certificate showing that the owner is up to date with payments to the state, cadastre, tabulation, certificate of performance energy, issued by a certified energy auditor, and in the case of apartments, the certificate issued by the association of owners or tenants showing the situation of maintenance debts). The land book extract is obtained through the notary, after submitting all the documents necessary for the transaction.
If everything is fine, the final price is set (sometimes the seller leaves the price when it is clear that the transaction is completed), a pre-contract is signed, which may involve paying an advance to the seller, depending on negotiations between seller and buyer. It must be completed for a period of at least 30 days, given that the loan process is often cumbersome.
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