Five Mistakes to Avoid As First-Time Homebuyers

By Aaron De Silva / EdgeProp | August 9, 2017 10:00 AM SGT
For many, buying a home is the single biggest investment one will make in one’s lifetime. The process is complicated, and requires some groundwork. Think of it like an exam: the better prepared you are, the better your results will be. Here are five common mistakes that, if dodged, will stand you in good stead.
1. Not obtaining your Approval In-Principle
Even before forking out the deposit for your home, you will need an Approval In-Principle (AIP). This is a non-binding agreement with your bank, which will determine the amount you can loan for the mortgage, as well as the tenure. Getting an AIP is useful for two reasons. Firstly, it helps establish just how much you can afford to spend on the property. Secondly, it shows sellers how serious you are in making the purchase. To facilitate a smoother process when applying for an AIP, make sure you have all the relevant (and most up-to-date) financial documents on hand. These include pay slips, bank statements, tax returns and credit reports.
You can read more about AIPs here.
2. Not considering more than one lender
Source: PSC Connect
You may have a lifelong relationship with a bank, but it doesn’t mean you should only look to this bank for a home loan. Also, some folks have the perception that local banks have better rates or packages than foreign banks. The fact is, fees, mortgage rates, and home loan packages vary from bank to bank. Your best bet is to shop...