Want to Own a House Through a Mortgage? Pay Attention to T

When your budget for buying a house isn't sufficient, one way to achieve it is through a mortgage, short for Home Mortgage Loan (KPR in Indonesian). However, applying for a mortgage isn't as straightforward as you might hope. It involves various requirements and goes through several stages. Mortgages are typically offered by various banks, each with its own terms and conditions. Here are some common steps to follow when applying for a mortgage.

Assess Your Financial Capability

rumah modern via home-designing

Before buying a house, you must consider your budget. It's not just about the total price of the house; you should also think about how you'll make the monthly mortgage payments. Typically, banks set the monthly mortgage installment at around 30% of your monthly income. If you're married, the total monthly income from both spouses is considered.

Choose a House and Negotiate

rumah minimalis via billigekfzversicherung

Selecting a house depends on your financial capabilities. Houses with strategic locations and designs are more attractive to a wider audience. Buyers will compete to negotiate with the seller. The negotiation phase is crucial. Here, you need to be skillful in persuading the seller to agree to a reasonable price to save on expenses.

When applying for a mortgage, banks typically cover 80% of the cost, while the remaining 20% needs to be paid upfront as a down payment to the seller. This arrangement is made because banks have assessed the house's value in case you fail to make payments, giving them the right to sell the house.

Visit the Bank and Complete the Requirements

rumah tradisional via architectureartdesigns

Once an agreement is reached between you and the seller, it's time to look for a mortgage. Ensure that the seller commits not to sell the house to others while you are in the process of securing the mortgage. Draft an agreement with the seller stipulating that the house price won't change during your search for a mortgage.

Select a mortgage that suits your financial situation and complete the necessary paperwork for the bank. Requirements typically include documents such as Family Cards, ID cards, marriage certificates, tax identification numbers (NPWP), salary slips, savings account statements, and employment letters. Additionally, documents from the seller related to the house, such as a copy of the Building Permit (IMB), house certificate, proof of tax payments, and an agreement signed by both parties with notarized signatures, are also required.

Bank's House Appraisal

rumah asri via pinterest

At this stage, the bank evaluates the house you intend to purchase. The survey results play a significant role in the bank's decision to grant a mortgage. A higher appraisal can be achieved by maintaining a clean and well-kept appearance for the house. Meeting all the requirements will help ease this process.

There may be fees associated with the appraisal process, depending on the bank's policy. Some banks charge for the appraisal upfront, while others do it after the mortgage is approved. If the mortgage isn't approved, the upfront fee may be non-refundable.

Signing the Credit Agreement

rumah kontemporer via hallofhomes

Once the requirements and appraisals are completed and approved, the next step is finalizing the documentation to disburse the mortgage. The documents include all the terms of the loan, interest rates, and penalty fees. A notary will handle the legal aspects of the agreement upon the bank's approval.

Applying for a mortgage involves various processes and requirements. The costs associated with it go beyond the mortgage itself, including insurance, taxes, and notary fees. It's essential to fully understand all the details explained by the bank before agreeing to the mortgage terms. If you can't meet the mortgage payments, you may need to sell the property back to the bank.