STEP 1 - "I've found what I've been looking for, now what?"
As the buyer, you have to find the property. After you have made your decision, you are required to fill in an application form prepared by the broker and pay the booking fee (min 2% or more). A receipt will be given to you after you pay the booking fee. If you, as the buyer go back on your word, the seller has the right to confiscate the booking fee. Otherwise, the seller has to double pay the booking fee to you if he or she goes back on his or her word

STEP 2 - "What shall I provide?"
You have two choices:

1: You provide the financial documents to the broker. They will assess your credit, income and assets to quickly determine what loans you qualify for.

2: You provide any relevant details and financial documents to the broker.

The buyer has to prepare his or her identity card and deposit. The broker will hand over seller's detail, buyer's detail and title to the lawyer for preparing the Sell & Purchase Agreement. The deposit will be handed to the seller only after both parties (seller and buyer) have signed the Sell & Purchase Agreement.

STEP 3 - "Where do the attachments go to?"
All the relevant financial documents will be attached to the application form and submitedt to the bank for approval.

STEP 4 - "What happens after 7 days?"
After 7 days, as the bank reply the approval, loan will be processed and an offer letter will be prepared. The buyer needs to sign the offer letter.

STEP 5 - "When do I start paying?"
Before signing the Sell & Purchase Agreement, both parties can decide the date of settling the rest of the deposit. Normally, the buyer is given three months for settling the rest of the deposit. The buyer can request the seller to extend for one month. However, within this one month, the buyer has to pay the interest that is calculated per day. The amount of the deposit depends on the amount of the loan. For example, if you loan 70%, you are required to settle 30% deposit within three months.

STEP 6 - "When is the transfer?"
The buyer will hand over the deposit to the lawyer for settling the ransom from the bank or financial company and property tax in order to redeem the property. Then the process of transfer can be carried on.

STEP 7 - "How is the transferring process like?"
As the property is being redeem and the seller has settled the property tax, the lawyer will submit the transfer form to the Land Service for registration. If the transfer form is approved, the lawyer will hand over the rest of the deposit to the seller. At the same time, the seller has to pass the right of the property to the buyer as final realize.

PURPOSE OF BUYING A HOUSE
For own usage: Having an own home is a dream for everybody. It is a place where you rejuvenate yourself after a hard day’s work.

For investment purposes : The purchase of a property may be for investment purposes where you get returns from rental or a higher price from resale. It also serves as a way to maintain the value of your money during high inflation periods.

Condominium : Condominiums are becoming more popular in big cities like Kuala Lumpur, Penang and Johor Bahru. Normally they are built near city centers and attract younger Malaysians with smaller families. Condominiums normally provide 24-hours security, sports facilities, laundry services, grocery stores and food courts. A certain amount of maintenance fee will be charged for these facilities.

BUYING A HOUSE
Buy a piece of land: A piece of land can be purchased to build a house according to unique preferences.

Buy a new house from a developer : This is an easier buy as there is no need for renovations and touch-up costs.

Buy a completed house : You can choose a house to match your personal needs and the existing neighborhood can be identified. You also don’t have to worry about the risk of project abandonment.

SHOPPING FOR A HOUSE
Location: This is the most important aspect when you shop for a house. A shorter distance from home to your office will save you valuable time. Living away from the city is a good idea if one prefers a peaceful and serene surrounding and basically it will cost you less.

Price : Before buying a house, you should plan out and assess your budget and financial capability to avoid failure in making the mortgage payments. The following are the most important things to look out for:

•Downpayment: 10 to 20 percent of the house.
•Monthly repayment: 33 percent of your monthly income.
•Other costs: Lawyer fees, government duties, transfer of ownership, renovation/repairs, maintenance fees for condo living, etc.

Neighbourhood : Always look for a surrounding that you feel most comfortable and convenient to live in. Find out about the available shopping places, schools, clinics, cafeterias and others. However, illegal activities such as rubbish dumping, illegal workshops and squatters may somehow devalue your property.

•Do not rush into making a decision. Buying a house is not like buying groceries. Think carefully whether it is the one you are looking for. A cheaper house does not mean it's a better deal. Check the condition of the house and if possible talk to your potential neighbours to gather more information.

Normally, home buyers get their loans from commercial banks. Commercial banks offer several types of loans:
•Loan facility
•Overdraft facility
•Loan and overdraft facility
•Endowment mortgage
•Mortgage from Islamic banks

Features of commercial banks loans:
Mortgage amount: Basically banks offer up to 80% loan of the purchase price.
Repayment period: Maximum 25 years.
Interest rate: Normally 10%-13% depending on the Base Lending Rate.
Criteria for Loan Approval: Income, age (minimum 18 years old), employment purpose of mortgage.