Best Loan Companies For First Time Home Buyers

Best Loan Companies For First Time Home Buyers – Here at Stacked, we get a lot of questions about the home buying process – especially from people looking to buy their first home. Naturally, our decision led to construction

Therefore, in order not to overload you with information, we decided to divide the guide into different sections with articles on topics and questions that allow for easy and digestible reading:

Best Loan Companies For First Time Home Buyers

In this series, we’ll take you through the entire journey step-by-step through our original content. If you are looking for your first home, arm yourself with the knowledge to make the right decision – this is for you.

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. We don’t just have a bowling character; We say that you should estimate exactly what you can afford. Apart from counting cash in your hand, it also means getting approval from your bank.

Sometimes called a pre-approval in principle (IPA) or pre-approval, this is a statement from the bank that tells you how much you can borrow if you buy a home within a certain period (AIP). usually valid between two weeks and 30 days).

For example, the AIP may say that the bank can lend you a maximum of $1.125 million if you buy the property during the credit period.

One of the riskiest things you can do is to secure an Option to Purchase (OTP) with a deposit on the property before getting the AIP.

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The deposit is usually a percentage of the purchase price and must be put down in cash (eg $15,000 for a $1.5 million property). Remember, this deposit

. So imagine if you put down $15,000 and find you can’t get a loan big enough to pay off the rest of the house.

In such a case, the seller has the right to keep your $15,000 and you walk away with nothing.

Also, remember that most OTPs only give you 14 days to exercise the option – so you have very little time to shop around and find a loan.

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When reviewing your application for AIP, the bank will look at your credit score, bring your pay stubs, and do all the things they normally do for a loan application.

Assuming you use the same bank that issued the AIP, most of the paper work is done. Loan approvals and disbursements can be much faster (this is one of the reasons why many real estate agents and sellers prefer to deal with clients with AIP; they know that delays are less likely).

We came across a case where a woman applied for AIP only to find out that she would be rejected for the loan. The reason was a student loan card he used about a decade ago. $500 threshold category.

For whatever reason, he can’t repay the debt on the card and the bank wrote it off – but it shows up as a default on his credit score. This small amount can hamper his home loan application process.

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In another case, another customer was mistakenly identified as the company’s corporate secretary (he is the employee’s secretary and not the parent company’s secretary). This prevents his credit and loan approval.

(Note that as in any industry, you will have your fair share of professional and unprofessional bankers. It’s worth taking the time to find someone you can trust. AIP).

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Shortlisting potential condos can be difficult when you don’t know how much you can afford. You may have your heart set on properties that prove millions of dollars are out of your reach.

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Remember that banks look at many aspects while processing your loan. For example, if you and your spouse are self-employed individuals earning $10,000 a month, you would count $7,000 as income.

This is due to the “haircuts” that apply to variable income, which means you can spend a lot less than you think.

(We will explain more about income requirements for home loans later in this guide – follow the Facebook stick for updates).

You might ask, what are sellers worried about? If they can’t get a loan, they can keep the deposit, right?

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Your deposit may actually be a very small loss to the seller of the property. For example, during the two-week period you wait to use the OTP, they can’t sell the property to someone else—someone comes along and offers $100,000 more than you.

Also, don’t forget that sellers have their own pressing issues. Some can sell within six months to get their Additional Buyer’s Stamp Duty (ABSD) free – if your unsuccessful deal is delayed, they will lose 12 per cent of the purchase price of their next home. Of course, if the seller has already purchased a new home, your failure may be the reason for the deal

As a result, some sellers and real estate agents don’t want to talk to buyers who don’t have an AIP. However, priority may be given to those who have taken loans.

Start by finding the bank you want to get a loan from. There are hundreds of home loan packages available at any given time (something we can help with).

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Alternatively, one tip is to reach out to your agent (if you have one) and introduce them to a trusted mortgage partner. As mentioned above, real estate agents are motivated to make an easy deal, so they need a mortgage banker they trust to work with your AIP.

But if you still want to work directly with the bank, once you find the bank (or banks) you can send applications to review your case. Each bank has its own procedures here, but make sure you have your SingPass handy to verify your CPF, IRAS tax forms, etc.

Note that there is usually no charge for obtaining an AIP outside of the application period. you too

Your AIP receiving bank is bound to use; If you want to use another bank, we recommend getting AIP from them.

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You can start short listing condos; You can do this with a clear idea of ​​what you can do.

Here’s the conclusion of Part 1 of Stocked Homes’ Ultimate Guide to Owning Your First Condo.

If you want to be updated as soon as the next episode is released, subscribe to our mailing list!

Ryan J. Ryan is an old-school print journalist who has gone digital. He has lived in almost all types of apartments in Singapore, from apartments to flats. For the past 18 years, he has been a content creator for companies large and small, a co-founder of an education business, and an occasional radio host. He spends a lot of time and money painting little plastic soldiers.

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My name is Sean, and our goal is to help home buyers and sellers in Singapore make the best decision for themselves. Have a question in mind? Email us at: hello@

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