Best Mortgage For First Time Home Buyers

Best Mortgage For First Time Home Buyers – At Stacked, we receive many inquiries about the home buying process, especially from people looking to buy their first private apartment. Naturally, this led us to decide to create

Therefore, in order not to overwhelm you with information, we decided to divide the guide into different sections and articles on topics and issues for easier reading:

Best Mortgage For First Time Home Buyers

In this series, we’ll show you step-by-step the journey through our original content. If you are serious about getting your first home and enriching yourself with the knowledge to make good decisions – this is for you.

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. We don’t just mean that there is a number; What we mean is an accurate estimate of how much you can spend. As well as counting the money by hand, it also means getting approval in principle from the bank.

Sometimes called Approval in Principle (IPA) or pre-approval, this is a statement from the bank that tells you how much money you can borrow to buy a house in a given period (AIP is usually valid for between two weeks and 30 days).

For example, the AIP may state that the bank can lend you up to $1.125 million if you purchase the property within the validity period.

One of the most dangerous things you can do is get an option to buy (OTP) on a property deposit before you get an AIP.

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The deposit is usually one percent of the purchase price and must be paid in cash (for example, a $15,000 deposit on a $1.5 million property). Please note that this deposit is

. Imagine putting down $15,000 and then finding out you can’t get a loan big enough to pay off the rest of the house.

In this case, the seller gets to keep your $15,000 and you get nothing.

Also, remember that most OTPs only give you 14 days to exercise this option – so you’ll have little time to shop for a loan.

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When reviewing your AIP application, banks will check your credit score, pay stubs, and everything else they usually do for a loan application.

If you are using the same bank that issued your AIP, all the documents are ready. Loan approvals and disbursements can happen faster (which is one reason many real estate agents and sellers prefer working with buyers who have an AIP; they know delays are less likely).

We had a case where a woman applied for FOIA and learned she was being denied a loan. The cause turned out to be a student credit card he used nearly a decade ago; sort of the $500 limit.

For some reason, the credit card debt was never paid off and removed by the bank – but it looked like a blemish on his credit score. This small amount can ruin the home loan application process.

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In another case, another buyer was identified as the company’s company secretary (he was the boss’s secretary, not the actual company secretary). This prevented him from approving credit and loans.

(Remember, as in any industry, you will meet competent and incompetent bankers. It is worth taking the time to find one you can trust who will do a good job for you in order to give you an accurate AIP).

Read what’s next. finance. How many home loans/mortgages can you apply for? by Ryan J

It is difficult to come up with a list of possible apartments when you do not know exactly how much money you can spend. You can offer some properties, but then you will not be able to buy them for hundreds of thousands of dollars.

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Keep in mind that banks will consider many aspects when processing your loan. For example, if you and your spouse are self-employed (SEP) and you earn a combined monthly income of $10,000, you will actually be considered to have earned only $7,000.

This is due to the variable income “cut”, which means what you can afford may be far less than you think.

(We’ll explain the income requirements for retail home loans later in this guide – follow Stacked on Facebook for updates).

You might ask yourself, what do sellers care? Can they keep the deposit if you don’t get the loan?

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For property sellers, your deposit is actually a minimal compensation. For example, during the two weeks they wait for you to exercise the OTP, they cannot sell the property to anyone else, not even someone who comes along and offers $100,000 more than you.

Also, remember that sellers have their own pressing issues. Some of them may be rushing to sell within six months to get the ABSD (Additional Buyer’s Stamp Duty) exemption – and if your failed contract delays them, they could lose 12% of the purchase price of their next home. Of course, if the seller bought a new house to move in, your contract may fall

As a result, some sellers and real estate agents do not like to negotiate with buyers who do not have an AIP. Even if they do, they may prefer those who have already received loans.

Start by identifying the bank you want to get a loan from. There may be hundreds of home loan options available at any given time (and this is something we can help with).

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Alternatively, one suggestion is to contact your agent (if you have one) to introduce them to a mortgage partner you trust. As mentioned above, since real estate agents are motivated to close a listing transaction, they want to have a mortgage banker they trust to do the right job for your AIP.

But if you would still prefer to work with a bank directly, once you have identified a bank (or banks) you can send them a request form to review your case. Each bank has their own procedures, but make sure you have SingPass handy to check your CPF, IRAS tax return, etc.

Please note that there is usually no cost to obtain an AIP, other than the time required to apply. You too

It is required to use the bank where you received your AIP; however, if you wish to use another bank, we recommend that you obtain your AIP from them.

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You can start choosing an apartment; and you can do this with a clear idea of ​​what you can afford.

This concludes Part 1 of The Ultimate Home Stacking Guide for Your First Home Owner.

If you would like updates as soon as the next part is released, please subscribe to our mailing list!

Ryan J Ryan is an old-school print journalist turned digital. He has lived in almost all types of housing in Singapore, from apartments to houses. Over the past 18 years, he has been a content developer for companies large and small, a co-founder of an educational enterprise, and an occasional radio voice. He also spent too much 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 possible decisions. Have questions? Send us an email: hello@

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First Time Homebuyer Guide

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