Answer these Questions Before You Buy your First Real Estate

By Billy Chen

So you are planning to own your home. But before you make any serious commitment towards this end, we would like to present you this check list for you to ponder over your decision:

1. Buy only if you plan to stay long term If you are already aware of the fact that you are not going to stay there longer than three years, perhaps it is not time to own one yet. Because the cost of owning the property and subsequently selling it in short time would mean that you are likely end up poorer, even if you see your property has appreciated in value. When the market is bad, the loss you have to suffer could be even unimaginable.

2. Brushing up your credit report. Unless you are filthy rich, you are not going to pay cash for your new home. The conventional source of fund would be lenders like bank. To make sure your application for a home mortgage goes as trouble free as possible, it is important your credit rating (publicly available) looks healthy. The trick is to obtain this rating report yourself before hand and when it signals problems, correct and fix them before you make appointment with the banks.

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.

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