To-Do Lists for First-Time Home Buyers: A Complete Guide
Make it stand out
For your first big purchase – your own place, we’re here to guide you through the steps you should do as a first-time homebuyer.
Firstly, save money.
Make sure your credit score is high by making payments on time, on or before the due date. It reflects your credibility when you’re overdue by two months or more. Also, avoid mass applying for credit as you risk leaving a record of potential rejections.
It helps to have a rough idea on what you can afford by calculating your Debt Service Ratio (DSR). DSR can be calculated by (adding all your monthly commitments + monthly repayment for the loan) ÷ NET INCOME. Then, multiply by 100 to get a percentage. The lower the DSR percentage, the higher the willingness of banks to provide you with the housing loan.
Subsequently, the next step is to find a real estate agent that has your interest at heart.
At Yin Homes we are focused on you - we are particular about being a boutique team because we want to give you the time and attention that is necessary before making a major life decision like buying a property.
It’s good to identify your dream home by making a checklist of what you want in your dream house i.e. big patio for gardening etc before looking for a house. Your helpful real estate agent would then be able to give you options that fit your requirements. We can start off with a virtual tour then request for a physical tour at potential properties. Remember to snap photos and make notes when you’re there, ask questions if you are uncertain.
Upon finding your dream home,
get in touch with your preferred banker to assist in preparing the necessary documents required by your bank for loan application. Also appoint a lawyer to help navigate through the legal processes involved in home ownership. Common documentation and terms are: Sales & Purchase Agreement, Title, Stamp Duty, Memorandum of Transfer, Agreement to Purchase, Loan Agreements and RPGT. As you can see, legal jargons are a handful hence it’s important to hire good legal expert to sort through the finer details and you get the benefits of sound legal advice.
One of the best benefits of home ownership is the potential and the freedom in the manner you choose. Whether it is to return an old house to its former glory or increasing built-up space, home renovations can add value to your property or even improve your lifestyle. Ask family/friends for recommendations in selecting a reliable home contractor. Interview them and compare a few quotations to get the best deal in the market; many contractors offer free on-site consultation and advice.
The day you’ve been patiently waiting for is finally on the horizon:
After years of dreaming, weeks of planning, and months of hard work, your home ownership has come to fruition. Time to schedule a final walk-through with the contractor. Make sure u check the light switches, sockets, windows, doors, faucets, drains and bathrooms.
