4 Steps To Take Before Taking A Housing Loan In Singapore
Singaporeans buy a lot of things in their lives but buying a house is probably the most expensive purchase we will ever make. There are many options to choose from where housing loans in Singapore are concerned. This does not mean that making a choice is easy. One must sift through the various options, carrying out comparisons until they find the best fit for them. In truth, most people can find the process overwhelming. The financial commitment is the biggest one they have ever made and they do not want to make a mistake. As such, they try to ensure that they do everything right. Here are some steps to take that can help anyone looking for a mortgage make the right choice. Step 1 One should start by assessing their current situation. Prior to looking into the various loan options available, one should consider their current circumstances by considering the following factors: Ideal price range – Since the payments one will be making every month towards the mortgage are dependent on how much the home costs, one should use a mortgage calculator to figure out the home they can afford. This will generally be a price range and not a specific figure. Financial health – It is important to consider one’s current financial status. This includes considering how much one has in savings that can go towards a down payment, credit history, current debt load, income and the like. Of course if one has a high credit score, then he or she will most likely get better interest rates. Additionally, if one has lots of savings that can go towards the down payment, he or she will end up paying less on overall interest. Basically, private banks in Singapore offer mortgages with lower interest rates. Future plans – If one is looking to rent out the home, or will be moving a few years later, he or she must consider this and how it will affect mortgage payments. In the same breath, a person planning on living in the house for a long time may be able to look
