We’ve all dreamed of what our first home would be like, coming up with ideas of how to design each room, taking notes from Instagram, Pinterest, or even interior design magazines. But how do you pursue that dream into reality?

First home purchasing could be a handful, especially if it comes to loans. Getting a home loan or mortgage might be an overwhelming process, but let's face the fact that we might end up needing it. That's why we are here to help you ease your worries by knowing what qualifies you to get a loan. 

1. Work History

To be able to grant you a loan, all lenders require you to issue a proof of employment. Generally, a minimum of 2 years of employment history is required by lenders to prove you have a stable income

However, if you are unable to do so, preferably best to provide a different source of income.

2. Credit Score

Your credit score plays an important role when applying for a home loan as it is the main requirement loan granters look into. It is based on each payment transaction made such as your borrowing and paying history. 

Many fail to realize that the higher the credit score, the lesser the interest rate. Having a low credit score will cause you to pay more for your loan. You can help yourself by increasing it gradually from time to time. 

Download your Personal Credit Report here!

3. DTI Ratio

Your DTI also known as debt to income ratio is your total debt parallel with your income and is often calculated when applying for a loan. In Malaysia the average accepted percentage of debt to income ratio is maximum 30%. 

If you are found having too much debt, you may end up purchasing a low costing house. 

Although these are general requirements, do note that each lender has different regulations.

Read more on managing your loans at ‘Managing Your Finances With Experian’.