So family and friends have been telling you that you should buy your first new house, right? As you busy weighing the pros and cons of the idea, this article would try to help you understand what it takes to buy a new home.
1. Are you prepared to stay put for at least 3 years at your new home? If you are not ready to stay in your newly purchased property for minimum of 3years, perhaps you have to put off this idea now. The reason is the kind of investment with property purchase and the associated fees charged on both buy/sell transaction would simply makes it impossible. You will end up lose money no matter it is a rising or falling market (here you end up losing even more money as your property will have depreciated in price).
2. Boost your credit rating Before you head to the bank for your mortgage application to buy a house, make sure you have an impeccable credit report. When you spot problems on the report, make an effort to correct and fix them. Your credit report would play a big part in deciding if a lender is going to grant you the loan.
3. Find appropriate home loan Banks generally can loan customers up to 80% of the purchase, or 90% for exceptional cases. But there are a lot of factors involved including payback period, your income, age price, locked in considerations, etc. For this reason, it is advisable you use the online calculator to have an overall appreciation of all possible combinations for the loan amount you desire.
4. Size of down payment As mentioned above, banks expect you to put up at least 20 percent of purchase price. When you are not able to pay that amount, you may have to talk to some other lenders like the sub-prime folks.
5. Buy into hot location with good schools If possible find a site where there are a number of popular schools. Reason is school districts are a top consideration for buyers who have school going children. When you want to sell your property, you can ask for a premium on top of a fair evaluation price.
6. Can you find the new home yourself or do you need professional help? While Internet has touched on almost all aspects of human activities, home buyer/seller still prefer physical interactions. Do you have time to shop around the properties that are put on the market or do you engage the help of a professional real estate agent? Sometimes it is worthwhile to get professional help as the agent is familiar with the processes and when he represent your interest, you find yourself don't have to worry about a lot of hassles.
When all above considered and you are even more determined to find your new home, get ready for thorough research on the property market. Past transactions conducted in the area and/or housing type of your choice should give an approximate indication of the real value of the property you are interested in.We are one of the real estate companies in Singapore and we have served our customers in South East Asia Region for years. Our network of agents is strong and we can help you to find your ideal next home for you.
