A wide array of sell-ready homes and properties are there in Singapore’s real estate market to be picked up by buyers. Aspiring property seekers also tend to own these properties one way or another with bundles of property buying options pertaining to finances. But there are some personal (home) finance myths.
An assortment of myths surrounding the concern of home-ownership that comes in between confusing buyers causing them financial losses. The property treasure prices at Tampines and at various other locations. As Woodleigh and Jui have significantly gone high in the recent past enabling buyers. But, the myths in place hinder them not only to get a worthwhile home deal. But also drags them to a substantial financial loss.
In an effort to debunk these myths, We have brought some pints in the light that buyers can guide themselves to take command of their finances. Knowing these myths can save you time and money in the course of your home-ownership:
Myth No- 1: It is Necessary to make at least 20% down payment
A home-seeker in Singapore, who finds a residences floor plan at Woodleigh worthwhile of his choice, gets a tougher time calculating a down payment. Like most of the other buyers, he might have a thought that it is necessary to pay at least 20% of the home purchase price at the time of buying a home.
The high upfront payment is bothersome for most of the buyers, especially when their home-ownership process is influenced by false anecdotes. The truth, in fact, is different. A buyer is necessarily required to make an upfront payment as big as 20% of the property price as there is mortgage available with 90% (of the property price) financing option.
Myth No-2: Cash buyers have more chances to win a deal
Another myth has also been found revolving around property-seekers disproving their home-buying process. Such buyers think that the buyers who are capable of making all upfront. Payment have more chances to win a home-buying deal than those seeking finance options. Though it’s true that the buyers, who can outbid for a property have better chances to win a deal, realtors also consider the buyers having approval-in-principal.
Take a Mont Botanik showflat for instance, do you like its floor plan or do you find the affinity worth of your desire? But, out of finances? No big deal! Conclude how much you can pay upfront and what is the least amount that you can get pre-approved by a lender? It will give you an insight into your budget and home-financing options. Even if you don’t have all cash at hand to pay for your prospect dream home, you can still grab a property with mortgage options.
Myth No- 3: Prequalification means an automatic loan
You got tempted by the Jui residences floor plan, but if you are seeking a mortgage to grab the property, your credit history must be healthy. Getting preapproved for a mortgage is not that tough but prequalification doesn’t mean an automatic loan. It requires your credit report and your terms with lenders healthy to get preapproved for the loan you are seeking. Make sure that you have never been a default as banks and lenders take their borrowers to positive vetting to find if he can be borrowed or not.
You have your property mortgage option open but, make it certain that your previous banking history is clean enough to enable lenders to have trust in you and approve you the mortgage to grab a property. So keep all myths aside and focus on how you can keep your banking track record healthy for quick loan disbursal for your new property-purchase.