The careful planning that comes with buying your very own house should not stop as soon as you’ve closed the deal and have bought the house. There is more to being a wise Malaysian homeowner that owns a Hampshire Park unit than just giving your home seller the satisfaction – it should go far and beyond until you own the house fully. This is what many home buyers these days forget and lead them to the one thing they fear the most: foreclosure.
Mistakes that Lead to Foreclosure
So before you make that one big, life changing move of purchasing your very own house, let this serve as your warning. Here are the 5 mistakes that you should avoid so as to avoid being in a house foreclosure rut:
- Not cleaning up credit records before applying for a mortgage loan. Even when your not-so-ideal credit record actually allows you to get a mortgage loan, that does not necessarily mean you should do it without cleaning up your credit history. Your mortgage lender will likely categorize you as a high risk client and thus end up with higher interest rates – and this could really hurt your budget in the long run. So before making a bid at a mortgage loan, take the extra step of cleaning your credit history – it may cost you something and some more time but it will be well worth knowing you could dodge a foreclosure problem in the future.
- Getting a very expensive home while having tons of other loans. One house, several cars, tons of home appliances all on loan? That just does not sound very wise to any loans guru. You have utilities to pay on the monthly basis that goes along with all your monthly mortgage and other loans woes and the economy and your income can never be on your side every month. So take your life one loan at a time buddy!
- Not informing your mortgage lender when you’re in trouble. This is one of the biggest mistakes to make. When you’re having troubles paying your mortgage, solve the problem right at the first signs of it. Don’t wait for things to get better before you do anything. Meet with your mortgage officer as soon as possible and explain your situation. They have plans available for you and for your mortgage problems in such a way that they don’t end up bankrupt and you don’t lose your house either. Yes, that is actually possible!
- Selling your house as soon as you find yourself in trouble. It may seem like a very logical solution to your money and house woes but selling and moving may end up being a more troublesome option. Again, take the time to discuss your situation with your mortgage lender and don’t just make this drastic option. Exhaust all other means first before going this way so you don’t lose a substantial amount of the money that you’ve already put into your house.
See more tips at my last blog post 
Foreclosure is easily avoidable. So long as you avoid these mistakes, foreclosure is just a far cry from your mortgage plans. Good luck!
