House purchase for the first time is a daunting task. People feel confused with lots of property jargon. Where to go, what to buy, when to buy, how to get a loan, how to save loan interest? And lots many questions keep coming into the mind of the buyers. All these questions make the scene look very difficult. Housing loan plays a prominent role in giving the headache. If you have not saved enough money for house buying or home interior design Singapore, lending is the only option. We would also not advisable to wait till you saved money for home buying without any lending, because the property rate is going high, renting has become expensive, the interest rate is low, etc. Here are housing loan tips for beginners.
Visit or contact more than one financial institution: - the market is all about competitions and as a customer; you must take advantage of this competition. Either you hold an account with the financial institution or not, they are always open to offer you a home loan. So use resources available freely on the internet, get contact details of the financial institution, and enquire all about a home loan with them. A financial institution not only offers a loan for the purchase, construction, reconstruction, land conversion but also lends for condo interior design. While enquiring them, read and understand all their relevant information carefully so that you do not take any action based on wrong or misunderstood terms and conditions.
Compare: - Just going to different financial institutions is not enough; even single banks sometimes offer different deals to different customers. Firstly shortlist the five home loans offers and then compared them with each other. This way you will get maximum benefits and fewer disadvantages.
Try to maximize the down payment amount: - Once you have settled on a single home loan offers. Now it's time to give your savings to the seller so that you need to take a loan for fewer amounts. Here, you must prefer giving money to the seller as much as possible. The more you give to the seller, the less you have to take a home loan. Always remember that a home loan is not offered free, you have to pay the interest to the financial institutions. Property advisors generally advise the buyer to give at least 15 to 20 percent of the total value as an upfront payment. So that you pay less interest on less amount of home loan.
Consider your loan payment capacity: - Home loan taking is easy but payment gets difficult for many. Consider all your future liabilities, future income plan, investment returns, active and passive income, earnings from the paternal or maternal property if any, etc. Children's education, family medical expense, Risk involved in the business, Market trend, etc also should be considered.
Have a plan for prepaying: - Prepay is the option that allows house loan taker to pay the remaining amount at one go and gets free from house loan headache. It is preferred to take a home loan with a prepayment facility. Generally, lenders charge some sort of conveyance fee once you decide to repay the loan amount, still, it is a sort of saving for you. Do not have a long horizon of your housing loan. As soon as you finish your home loan liability by prepaying, you may start focusing on other investment avenues. An experienced player in the housing sector gets free from a home loan by prepaying and then they take a loan for home interior design Singapore. This way, they make their home more beautiful and decorated.
Conclusions: - Choosing the suitable home loan for you considering your local factors too. These are just general tips and very useful for first-time home loan takers.