How To Prepare For the Mortgage Process


Planning to purchase your own home? Congratulations! Buying a home is a big step, and the most challenging aspect of it is making the right offer for that dream home. A wrong offer can create a lot of problems. Therefore, it is very important to prepare yourself well for the mortgage process, searching for a home, and finally, making an excellent and ideal offer.

Get Your Mortgage Pre-approved

Before you make an offer for a home, you need to get your mortgage pre-approved by a lender. This process involves the lender reviewing your credit. Once the review is completed, an underwriting decision letter is written.

Limit Contingencies

Try to limit the unwanted contingencies as the seller might want to get the selling process of the house in a short period of time. Remember, the fewer the contingencies, the more attractive the offer. Especially for new developments, such as the Parc Esta Condo Singapore, there might be unforeseen contingencies. Ensure that you’ve planned and prepared for every situation so that the transaction process is smooth.

Make a Competitive Offer

One thing to keep in mind is that you are not the only one making an offer. First off, assess the market price of the land. The complete negotiation process is quite quick and short, so if your first offer is not what the seller wants, chances are, your potential home is going to go to another bidder. You would not want your dream home to fall into someone else’s hands, especially if the home is beautiful and luxurious, like the Belgravia Green Terrace in Singapore.

Keep your Earnest Money High

This is essentially a deposit that indicates your good faith and will help the seller decide on who to sell the home. If your earnest money is high, the seller will understand that you really are into the house. The earnest money is somewhere between 1 to 3% of the total purchase value of the home. And yes, once you pay the earnest money, stay put, do not back out, otherwise bid goodbye to your earnest money forever. However, if your offer is rejected, you get your earnest money back, so don’t worry about that. 

Make an escalation clause

So, what is an escalation clause? It is a way to increase your bid automatically. This will be decided by your agent, so relax! However, make sure you are investing in a home you truly want to purchase. When you pay the appraised value, you actually are paying $10 to $20 more than what the house is worth.

Build a Connection

Finally, in order to win the game, appreciate the house and the neighborhood; in short, make a connection! Tell the seller why you would love to buy this house. What is it that makes you want to buy their home? Speak your mind. The more you impress the seller, the more chances of your winning the bid.

At the end of the day, purchasing a home is a hectic process, but it is all worth it in the end. Searching for a home, touring the different areas, negotiating with the seller, and finally waiting to see if the house is yours. Stay patient and make sure you invest your money in a professional mortgage lender. Try to follow these tips and see how you finally buy your potential home quickly.

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