Check List For Would Be First Time Property Buyer
12:48 AM
You have long been contemplating to buy a first house for the family. But before you start making your house search and shopping for lender, make sure you answer these questions first to assess your real need and possibility to own a house of your own.
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. 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. Is your dream home within affordability? As a general rule of thumb, most lenders are happy to lend up to 80 percent of purchase price. But to have a better idea on the kind of loan amount you can be approved on, make use of those online calculators at the bankers' sites to check this in relation to your income, debts, and expenses.
4. Are you comfortable to put up to 20 percent of the purchase price? Again most lenders would want you to be able to foot at least 20 percent of the purchased price. You can try to negotiate this amount down if you have problem over that but we would not recommend it.
5. Convenient public amenities and facilities for the family. The point cuts both way as buyers would want easy access to amenities and facilities while sellers knows they can charge a premium on their properties that are suitably located.
6. Enlist the help of property agent While Internet is useful disseminating valuable information like home listings, when it comes to a time to follow up, like physical home inspection, negotiating terms and price, human type interaction cannot be avoided. It can be a good idea to get help from exclusive buyer agent as they can help to take care of all these hassles on your behalf and acting on your interest.
Finally, when you choose to go ahead with the house hunting, get ready for some serious work. Always do a background check on the property that interest you, before you get to meet the prospective seller or the representative. You would want to find out the sales trend of similar housing type in the nearby area. Check the most recent transacted prices. This way you will walk into the negotiation confident and talk your way into buying that dream home of yours.
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. 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. Is your dream home within affordability? As a general rule of thumb, most lenders are happy to lend up to 80 percent of purchase price. But to have a better idea on the kind of loan amount you can be approved on, make use of those online calculators at the bankers' sites to check this in relation to your income, debts, and expenses.
4. Are you comfortable to put up to 20 percent of the purchase price? Again most lenders would want you to be able to foot at least 20 percent of the purchased price. You can try to negotiate this amount down if you have problem over that but we would not recommend it.
5. Convenient public amenities and facilities for the family. The point cuts both way as buyers would want easy access to amenities and facilities while sellers knows they can charge a premium on their properties that are suitably located.
6. Enlist the help of property agent While Internet is useful disseminating valuable information like home listings, when it comes to a time to follow up, like physical home inspection, negotiating terms and price, human type interaction cannot be avoided. It can be a good idea to get help from exclusive buyer agent as they can help to take care of all these hassles on your behalf and acting on your interest.
Finally, when you choose to go ahead with the house hunting, get ready for some serious work. Always do a background check on the property that interest you, before you get to meet the prospective seller or the representative. You would want to find out the sales trend of similar housing type in the nearby area. Check the most recent transacted prices. This way you will walk into the negotiation confident and talk your way into buying that dream home of yours.
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