Research what you can expect during the home buying process and study all the stages of buying a home. It may be a dream you have had since childhood. Perhaps, you have rented for most of your adult life and now want to experience the joys and satisfaction of home ownership. Buying a home is a big step and requires a lot of important decisions along the way. You can be sure your home purchase is something you feel good about for many years ahead, with some advanced planning and research. Here are the basic steps that lead you to a successful transaction.
Understanding What You Can Afford
This is unlike from qualifying for a loan. This is calculating how much of your budget you will commit to your home and how much money you want for other things. If you love fishing or a hobby, factor the required budget for your favourite pastime into your overall household budget. With that in mind, think twice about buying a home the bank says you can afford. You will be happiest in the home that allows you to enjoy life to its fullest. Use this calculator to help you to estimate a housing loan and property price based on your income and your ability to service the loan.
Review Your Credit Report
A lower score will result in a higher interest rate and possibly prevent you from qualifying for the loan you want. It can take several years to correct any errors in your report. By reviewing your report a few months before home shopping, you could save yourself several thousands of dollars over the life of your loan.
Choosing Your Professionals
Monetary Authority of Singapore (MAS) regulates lenders to help protect consumers from predatory lending and mandates all required information about your loan and real estate transaction be written in clear, easy to understand wording. The Council of Estate Agencies (CEA) is also an excellent resource for homebuyers.
Take time to interview several lenders before signing with one. You can be pre-qualified by your bank or mortgage broker. That does not obligate you to choose them for your home loan. Discuss your goals with your Ping Property Agent. We are here to consult with you at each step of the process. Also, it is a good idea to know who will be your solicitor for the closing. As the homebuyer, it is your right to choose the solicitor who will represent you in the closing.
Choosing Your Home
Once you are pre-qualified, you are ready to begin shopping for your new home. For most buyers who plan to purchase with a standard 30-year fixed-rate mortgage, there are few restrictions on the houses they view.
Take your future plans and lifestyle into consideration as you view homes. If you plan to move in a few years, you may want to choose a simple, easily affordable home that will always be in demand and fairly easy to sell. It is best to have a second and third choice in mind that you can go to if you have to walk away from negotiations on your first choice.
Negotiating the Contract
Buying a home is an emotional experience. Trust your home buying expert with Ping Property for guidance. They work with lenders, home sellers, and other real estate agents every day. They will advise you on negotiation strategies and be there to provide objective advice that protects your best interest in the transaction. Most contracts have contingencies, and the negotiation is not complete until all contingencies are met.
Ministry of Law Singapore requires that lawyers provide homebuyers with as accurate of a good faith estimate as possible and that they disclose the nature of all cost. It also prohibits kickbacks and other unlawful payments among real estate professionals and lawyers. For any changes in amounts before or after closing, the lawyer must provide you with a corrected funds disbursements showing the actual amounts. All financial figures must be documented in writing and not delivered verbally. With sufficient communications prior to closing, you know the amount of certified funds (if any) you need to bring to closing. You can relax, sign the necessary paperwork, and receive the keys to your new home.