Buying or renting a home is not something that one rushes to without proper thought. Often, questions linger in your mind on whether it is the right thing to do or not. Always take some time to think before landing on a decision carefully. Sometimes it may be too overwhelming for you and in most cases, this occurs for first time home renters and buyers. You might also wonder what you need to know before making a decision; the following questions can guide you in this:
How much savings do I have for a down payment and closing?
Renting or buying a premise requires you to have some savings. This is to facilitate paying for the first month and deposit too—if you are renting.
If you are fixated on buying a home, then keep in mind that you need to save around 7% or more of the home’s value. Closing costs add 2-4% to the total cost. You should try as much as possible to avoid private mortgage insurance by offering a 20% down payment. If your savings are inadequate, consider saving for a down payment only before you head out to buy a home.
What is the difference in rent and buy prices, which one is costlier?
This is another sensitive question you should ask yourself when either renting or buying the property. One thing that can affect this decision is the housing market. For instance, if the rent prices increase every year, then you might consider a mortgage for your home. Similarly, a house in an expensive area will have a higher price for buying as compared to renting.
How long do I intend to live here?
Your duration of stay also matters when it comes down to renting or buying a property. It doesn’t make any sense to buy a home where you intend on staying for only a short duration. In such a scenario, then it would be wise to rent instead. Also, it is more economical to buy a property where you intend to live for a long time rather than renting. Buying is cost effective when you are bound to stay for very long.
Was the house built with the relevant standards?
For a comprehensive approach to this, you can request for the site plan to confirm how the property was erected. Be sure to ask to see the floor plan as well so you can confirm the layout of the rooms and have a better idea of how your home will look like. Sometimes people may build a substandard home or build a house without following the proper safety procedures and sell it to you, leaving all those issues in your new house.
Always make a point of confirming all the nitty-gritty details before making a purchase decision. It’s for the best if you could physically go down to the location to take a look and check for any issues. For instance, you could take the time to visit a showroom like the Treasure at Tampines launch. Before you visit, look up “Treasure at Tampines psf” to see if you’re satisfied with the amount of room you get for the Treasure at Tampines prices.
Will I get a good mortgage deal?
You need to qualify for a good mortgage deal to help you with the expenses of buying a home. For you to land this deal, you need to have an ideal income and credit score. This will enable you to access mortgage loans that have the lowest rates and best terms. Having bad credit, however, doesn’t mean that you will not get a mortgage loan. It merely means that you might have to pay more because of it. You can always check your credit score to find out your standing before buying a home. This is likely to be necessary if you are applying for balance units. Be warned—you’ll have to fork out more in return for a shorter waiting time!