It's the single largest investment you may ever make. It's also where you will build your family, centralise your life and create lasting memories. Buying a home is no task for the faint of heart, that's for sure. Your biggest concern at this juncture may be, “Can I afford one?”

Any dream should be tempered by time, effort and patience. Hence, you need to wade in carefully, with your eyes wide open. Arranged in practical steps, Speaksens' 5 Criteria (5C's) to owning your dreamhome are as follows:

Check Your Credit Reports
Before anything else, get your credit reports from The Credit Bureau, Bank Negara Malaysia. Find out how you fare. A positive credit record will help you secure a cheaper home loan.

Consider Your Options
Identify your property according to your preferred location, type of property and budget. Your most important considerations should be:

• Do I have enough money to make the down-payment and cash flow to pay the loan installment? You can find out right now, by using our very own HOME LOAN CALCULATOR.
• Don't forget to include in your overall cost the incidental fees that come with the territory. The most common ones are legal fees, stamp duties, processing fees and disbursement fees.

Choose Carefully
Surf the web. Collect home loan brochures from different financiers. Explore more sources of financing for your home loan, i.e., banks, insurance companies, MBSB, KWSP/EPF, etc. After which, decide which type of home loan best meets your needs, i.e., flexible repayment, low rate fixed term, Islamic, etc. Ask yourself:

• How flexible can my loan payments be?
• Is the interest rate fixed or variable with the BLR?
• Is there an early termination penalty if I repay my loan in full before the tenure expires?
• Do I fully understand all the terms and conditions of the loan?

Once you've selected the home loan, submit your application to the financier. The financier will evaluate your eligibility and release a Letter of Offer to you after the approval goes through. Negotiate a low interest rate if you have a good credit report and are buying a house at a good location built by a reputable developer.

Once agreed on the S&P (Sale and Purchase), sign and pay the downpayment. Depending on the situation, you may need to sign the S&P first before you can get your Letter of Offer from the bank. Next, sign and submit the following documents to your home loan financier.

• Letter of Offer
• S&P Agreement
• Valuation reports (if required)

Lastly, chill while you wait for your lawyer to complete the remaining steps until disbursement of your home loan from your financier.

Cover Yourself
All homeowners are strongly advised to subscribe to a Mortgage Reducing Term Assurance (MRTA). In the event of unexpected death or TPD (Total Permanent Disability), MRTA will help the home owner pay off the mortgage and settle the remaining loan. Get your bank's officer/insurers to explain to you on how MRTA protects you, what options are available to you, and how you should be covered.

Caution!
Buying a home can lead to bankruptcy if you are not prepared! Notice the sharp rise in the number of properties for auction being advertised in the local papers today? According to the Glossary provided in Bank Negara's website, a loan is classified as non-performing when payments of interest and principal are past due by 6 months or more.