There are many things to consider and prepare in advance before finding the perfect home for you, but several simple steps you take now will better prepare you to be a first time homebuyer.
By: Phoenix Lee/
Are you buying a home for the first time? Purchasing a home can be complicated and intimidating, but there are some steps you can follow to help prepare you to be a first time homebuyer and for homeownership.
GET YOUR FINANCIALS IN ORDER
A mortgage is likely to be the largest financial obligation you undertake, and you should make sure you have a good credit report, a high credit score, and an appropriate down payment. Order copies of your credit reports and review them carefully to ensure that all of the data is accurate. You should also make sure that you have saved an appropriate amount for not only a down payment, but also for closing costs and legal fees.
During this process, the first time homebuyer should also determine how much money he can truly afford for a mortgage payment, keeping in mind that there are some hidden costs to homeownership. Once you decide what you can afford as a down payment and monthly payment, you’ll know how much house you can afford.
A first time homebuyer should find highly-qualified and well-recommended housing professionals
Next, find a highly recommended real estate lawyer, a real estate agent, and a mortgage company, prior to making an offer on your home. The best recommendations are likely to come from co-workers, neighbors, and friends.
As a first time homebuyer, you can rely on a bank to tell you how much of a home you can afford, you can figure it out on your own, or you can rely on a responsible mortgage broker.
If you go to a bank directly, they may approve you for a more expensive home than you want to purchase. This is because banks will approve you to your maximum home price, which can generate more fees. When you purchase a home at your maximum upper-limit, though, it does not leave you with much cash for saving, investing or living comfortably.
Usually, the time frame from making an offer to closing is very fast, and having the best team on your side will likely make things move much more smoothly. Once you have a few recommendations for mortgage brokers, call them to see what rates they can offer. Make sure that you ask if they have a first time buyers program.
A responsible mortgage broker will help you determine the maximum monthly payment you would like to make each month. This will require thought and attention to your household budget. Then, using using a mortgage calculator, the responsible mortgage broker will feed your desired payment and today’s mortgage rates to find the loan size with the kind of payment you can afford.
This method used by a responsible mortgage broker is better at holding you “on budget”, as compared to letting a bank set your maximum purchase price. Without any partiality, the mortgage broker can compare a range of products and lenders. This will help you save time and money, avoid confusion, and improve your chances of getting approved, as well.
Engaging a responsible mortgage broker can help you save time and money. They help you ease the process of shopping for a home loan, and tell you “how much house you can afford”.
LEARN ALL ABOUT THE HOME BUYING PROCESS
Learning more about the home buying process will also help. Do some research online, or talk to your mortgage broker or real estate agent to find out more about the process. There are some standard steps that occur during the home buying process – such as purchase and sale agreement, and closing. Understanding how the process works will make you feel much more comfortable.
Also learn about the type of things that you’ll need to do prior to your closing. Most home lenders require you to buy a full year of homeowner’s insurance. Closing costs can also add to the total costs, and inquiring about them in advance will help you prepare for them.
Once you have prepared these financial steps, you will be ready to visit open houses and look at for sale homes, knowing that you are ready to buy when you find just the right place.
How to Secure a Home Loan Quickly
For a first time homebuyer, planning to buy a new private home could be stressful as you may be ensure of funds availability for purchase. But worry not, because iCompareLoan mortgage broker can set you up on a path that can get you a home loan in a quick and seamless manner. We are the experts who do the work for you for free, while you lean back, rest and rely on our professionalism at absolutely no cost to you.
Our brokers have close links with the best lenders in town and can help you compare Singapore home loans and settle for a package that best suits your home purchase needs. Find out money saving tips here.
Whether you are looking for a new home loan or to refinance, the Mortgage broker can help you get everything right from calculating mortgage repayment, comparing interest rates all through to securing the best home loans in Singapore. And the good thing is that all our services are free of charge. So it’s all worth it to secure a loan through us.
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