If you are in the market to purchase real estate and you are actively seeking new properties in Singapore to buy, you may consider pausing to get pre-qualified for your housing loan as a first step in your effort. It may seem counter-intuitive to apply for a housing loan before you have even found a piece of real estate that you are interested in purchasing, but there are actually several important reasons why this is a step that you may want to take today. After reviewing these reasons, you may decided to contact a loan representative today.
Know How Much You Can Afford
Many new home buyers who are actively searching for property in Singapore have already used online calculators to estimate mortgage payments and to estimate a reasonable price that is affordable for their budget. However, your credit rating and financial profile will play a critical role in the mortgage qualification and approval process, and a loan representative can provide you with more information about this when you apply. Essentially, you will have a much more realistic estimate of the price you can afford to pay for your new real estate purchase when you get pre-qualified.
Get a Better Deal on Your Loan
After you make an offer on a property, you will generally need to act quickly to get your loan application in progress. You will have a fixed deadline that you must comply with to get loan approval, and this may create some pressure on you to submit a loan application right away. You will have more time and less pressure to shop around for a better deal on your loan when you complete this effort up-front.
Some Real Estate Agents Will Not Work With You Unless Pre-Qualified
Getting pre-qualified before you start searching for a new home can prevent many issues with the home search process as well as the financing process. For example, it can more accurately ensure that you can afford the property that you are interested in and that you want to make an offer on. The last thing you want is to spend days searching for a property in a specific price range and to get your offer approved only to later learn that you must back out of the contract because you cannot obtain financing on it. Some agents actually will not work with buyers who are not yet pre-qualified for this reason. Your real estate agent may ask that you get pre-qualified for a home loan if you have not yet taken this initial step.
Your Purchase Offer Will Be Stronger
Many sellers will also look for a pre-qualification or pre-approval letter when they receive an offer on their property. When a seller accepts an offer, the property essentially is taken off the market and is no longer actively listed for sale. This means that the seller is taking a chance on you and is depending on your ability to follow through on your offer. Sellers can find a greater level of security and comfort with accepting your offer when they know that you have the financial means to follow through on your offer to purchase the property. This means that your offer may be more likely to be accepted.
While you may be excited about searching for a new property to purchase in Singapore, you should take time to shop around for your new home loan and to get pre-qualified for your financing. This initial step can streamline the entire buying process and can make your efforts more successful. You can reach out to a mortgage professional today for assistance with pre-qualification.