Buying Your House in 5 Steps

Finally, I’ve bought my own house last Saturday. I find that buying house is easy, but selecting the right one is hard. :P

You may refer to my previous post on Mortgage vs Conventional Housing Loan to discover more about housing loan.

Below is my sharing on the steps you will have to go through in buying new house. It is not complicated, don’t worry. Just be patient!!

Step 1 : Place your deposit/booking on the unit you like to the developer.

Step 2 : You may start contacting the bankers (some developers would get the panel bankers to contact you though) to check on the loan packages. You may submit the loan application to the banks that you are interested in. You may try on a few banks. The bank might need the Photostatted copies of the following documents from you:
• IC
• EA Form
• EPF statement
• Bank book statement/transactions in recent 3 months
• 3 recent month salary pay slip
• Booking receipt of the property

Step 3 : Sign the S&P (pay the legal fees, lawyer fees, water and electricity registration deposit, if applicable) with the developer within 7 days from the booking date.

Step 4 : Pay your balance of down payment within 21 working days after signing S&P.

Step 5 : Sign the Letter of Offer with your selected bank within 60 days after signing S&P.

Once the S&P (from developer) and Letter of Offer (from bank) are signed, the deal is considered done!! Yes, just that simple!!

Oh, last but not least, some advise on EPF withdrawal to purchase your house. You will need the S&P Agreement and Letter of Offer (from bank) in order to proceed with the withdrawal. And the process will take approximately 2 to 3 weeks. The amount eligible to withdraw is the difference between the price of the house and the housing loan with an additional 10% of the price of the house.