5 Things To Do Before Buying Your First Home
Buying your first home is exciting yet nerve-wrecking at the same time, especially if you are looking at the amount of money involved. Like many couples buying their first homes, my wife and I were totally clueless and did not know what to expect of the entire process. Let’s face it; this could be the most expensive purchase in your entire life. You should get it right!
Here are 5 Simple steps to follow as you take the plunge into your first home purchase.
1. Appoint A Reliable Real Estate Professional
Appoint a responsible and resourceful agent, and a lot of your concerns will be taken care of. Real estate agents are a dime a dozen in today’s property market, even with the increased qualifications required by the governing bodies. You will want to make sure that you partner with the right agent for a decision that will possibly affect the next few years of your life, and to ensure that the transition into marriage is made easier by a satisfied home purchase.
2. Consult A Banker
How big of a loan can you take? Approach at least three banks to get an In-principle Approval on your loan amount and compare the interest rate. You should provide all your financial information to the bank, in order to get an accurate assessment of the total loan amount eligible.
3. Identify Your Preferred Property Type
There are many different property types, some of the most prominent being HDB flats, Executive Condominiums, and private condominiums. Under each of these property types, there are sub-categories that differ in terms of the size, location, and layout. Together with your spouse, choose the property type most suited to both your lifestyles, also bearing in mind the location with regard to traveling time and distance to both your parents’ places, and schools for your children in future.
4. View & Shortlist
Once you have identified the property segment and area you would like to move into, begin making arrangements for viewing to see the actual property units or visit showflats for upcoming and new properties.
5. Compare & Make An Offer
Upon shortlisting units you have visited, do up a simple chart to compare the pros and cons of each property to aid in the selection of the most ideal home based on your requirements. Pay careful attention to the past transacted pricing for the property, then decide on your offer price and make a formal offer to the seller.
If your offer is rejected, you can start the negotiation and work with the seller for a price you are comfortable with.
If you are not satisfied with the prices given, go back to Point 4 and start shortlisting again.
The moment your offer is accepted, timelines and processes will start to kick in. You will then need to appoint a conveyancing lawyer to represent you in this property purchase, but that is a whole new topic which deserves an article of its own.
Suffice to say, buying a property is not an easy process. Professional help is key, and this being possibly the most expensive item you will be purchasing, you want to make the right decision and choose an appropriate property. Begin with these five simple steps, and you should be off to a good start.
Director, First Home Advisors