Best advice for first-time homebuyers before they get their dream homes

First-time homebuyers have to deal with a lot of anxieties and uncertainties. It is fairly common for first-time homebuyers to be unsure of different housing grants and subsidies, and if they would qualify for them.

This is the reason why we have collated this list of our best advice for first-time homebuyers to help them make the big move.

Use a Trusted Property Agent

There are many property technology available out there, which could help first-time homebuyers close on their home in a DIY manner. You may also think it’s not worth the extra money to work with a property agent, but an agent can make or break your home buying process. Not only can they provide personalised excellent advice for first-time homebuyers, but they can also negotiate on your behalf for anything from the purchase price to home inspection procedures.

Most effective property agents are those that use proptech like Home Loan Report to augment their personalised service, so that they are most useful for first-time homebuyers.

Know What You Can Afford

Buying a home would be the biggest financial commitment you will ever make. The first step before making that commitment is to determine what you can afforst. Be sure to consider your mortgage costs, monthly expenses, and long-term financial goals. Be sure to budget in costs for home inspection, homeowner’s insurance, and closing costs. Depending on the situation, you may also want to budget for things like painting, furnishings, repairs and renovations. There are many Affordability Tools available in the iCompareLoan website which first-time homebuyers can use to ensure that they are not caught unaware.

Start Saving for a Down Payment Early

If you are buying an HDB flat, you will have to have 20 per cent in cash or CPF to use as down payment. If you intend to buy a private property you need to down 25 per cent, and 5 per sent of this has to be in cash. To have 20 – 25 per cent for the down payment is a great goal, but the best thing to do is to save as much as possible, as it will help you keep lower interest rates, and could possibly keep you from paying private mortgage insurance. Try using a mortgage calculator to get an idea of where you stand.

Get Everything in Writing 

Unless an agreement is in writing, it may as well not exist. If you make a verbal deal, be sure to talk to your agent and/or your law firm, and get all contingencies put in writing. This is also what you’ll want to do with any issues that come up during the home inspection. The last thing you want is to be responsible for damages that the previous owner should have handled.

Buy for the Life You Want

Consider your long-term plans before settling on the idea of what your dream house looks like. Will you be staying at your current job? Are you considering to have kids? If you are not sure the house you are interested in now will be the one you want in five years time, pick a different home.

There’s a lot that goes into buying your first home. You’ll want to consult far more detailed resources as you navigate this process, but we hope these first-time homebuyer tips help you as you start your journey.

Befriend a Mortgage Broker

Mortgages are incredibly complicated. Seeking loans online may seem simple, but it’s not effective. A mortgage broker can streamline your process, answer your questions, and get you the best home loans. A mortgage broker can also help the first-time homebuyer get pre-approved for a home loan.

Mortgage brokers are specialists who are well versed with the banking loan process and have access to hundreds of mortgage and loan packages across many banks. Mortgage brokers help property buyers to get the best home loans and home owners to refinance home loans.

It is gradually coming to dawn on homebuyers that rather than going to a specific bank directly, which may or may not give them the best home loan offer at the specific time, they should go to mortgage brokers, as they have a purview to all the bank’s packages and can help advice clients accordingly.

first-time homebuyers

It is especially useful to befriend mortgage brokers because their services are free to borrowers because the bank pays a referral fee upon successful loan disbursement. Mortgage brokers offer unbiased recommendations since they are not tied to any one bank.

Mortgage brokers are well-informed of all the loan packages in the market and their accompanying features, compared to most borrowers, because it is their job. Besides matching you with the right loan, they can warn you about caveats and conditions of the loan contract, which if you are a lay person you may not be aware of.

In addition, loan contracts have financial jargon that first-time borrower may be baffled with. A mortgage broker will be able to explain these to you in plain English. Most will even assist you with the paperwork in the application process. In short they take most of the hassle out of the loan process – from search to application.

By: Phoenix Lee/Contributor iCompareLoan

How to Secure a Home Loan Quickly

Are you planning to on buying a new private home but unsure of funding? Don’t worry because iCompareLoan mortgage broker can set you up on a path that can get you a home loan in a quick and seamless manner.

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.

Our Affordability Tools help you make better property buying decisions. iCompareLoan Calculators help you ascertain the fair value of a property and find properties below market value in Singapore.

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.

For advice on a new home loan.

For refinancing advice.

Written by Ravi Chandran

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