Leon Chen
Mar 8, 2019
Buying a house is a major life event for many people. Whether you are a first-time homebuyer or someone with experience, the home buying process can be complex and confusing, and buyers can easily forget some important steps. To help homebuyers understand the correct home buying process, we'll share some key points to consider when purchasing a property.
What is the first thing I need to do?
First, you should create a budget based on the potential expenses of owning the property and assess your purchasing power. The following related costs should also be considered: future municipal taxes, home insurance, maintenance costs, and mortgage service fees. Next, you need to consider your repayment ability; how much savings you have for the down payment will determine the price of the house you can afford. Finding a trustworthy real estate agent to provide you with accurate and professional guidance and assistance can greatly help you buy your ideal home.
Should I apply for a loan first when buying a house?
It's advisable to apply for a loan as early as possible, ideally before you even start looking for a house. Once pre-approved, you'll know your loan amount and can determine the price range of a property you can afford, allowing you to focus your search more effectively. If you plan to participate in auctions, it's even more important to prepare early. What documents are needed for a loan application? Basic documents include: copies of your identity document, visa, bank statements for the last three months, and your last three Payslips. The main focus is on whether you have a stable source of income to repay the loan.
How long does the loan approval process take?
Assuming you provide all the required information at once, your application will typically be processed within 24-48 hours, and you can usually get pre-approval within 5-10 business days.
What else needs to be done?
First, contact a lawyer as early as possible before looking for a new home. Second, it's advisable to have a professional home inspection before moving to an unconditional contract. Contact your insurance company early, as they may request additional supporting documentation from the homeowner, which can be time-consuming. What else do I need to do before the auction? Obtain pre-approval for a bank loan. Obtain relevant records of the title deed and land information memorandum (LIM) for the property you intend to purchase through your lawyer to ensure there are no issues with the property. Obtain confirmation from your insurance company that you are providing full home insurance coverage. What should I be aware of before making an offer? Communicate with your bank and lawyer to ensure everything is prepared before the auction. Note that a formal offer made through a Sales and Purchase Agreement is legally binding.
How to determine the loan interest rate and repayment period?
Generally speaking, it is best to negotiate after your purchase contract is converted to an unconditional contract. This ensures that you are aware of all available loan options. Banks usually only help you with this after you declare the contract unconditional. The loan interest rate and term can be chosen based on your specific circumstances.
What steps are easily overlooked before buying a property?
1. Many people don't consult a lawyer before making an offer, and then frantically seek recommendations at the last minute. You should spend time early finding a lawyer who specializes in real estate transactions and is best suited to your needs to assist with the purchase. 2. Many buyers leave homeowner's insurance until the last minute, unaware that obtaining approval for homeowner's insurance takes time. Prepare for insurance matters in advance. 3. When declaring the purchase agreement unconditional, make sure all conditions on your bank's pre-approval letter have been met, or that you have obtained unconditional pre-approval from the bank, before declaring the purchase agreement unconditional.
Once a conditional purchase agreement is accepted, what steps are required to convert it to an unconditional one?
Immediately begin working on all the conditions in the contract. Common additional conditions include: home inspection, loan application timeline, LIM report, etc. Before converting to an unconditional contract, complete all due diligence and stay in communication with your lawyer and mortgage broker, informing them promptly of any changes.