Purchasing your first property is an exciting milestone, but navigating financing options can be overwhelming. This guide breaks down the process into manageable steps.
1. Assess Your Financial Readiness
Before exploring properties:
- Check your credit score (aim for 650+)
- Calculate your debt-to-income ratio
- Save for down payment (typically 10-20%)
- Budget for additional costs (stamp duty, registration, etc.)
2. Understand Financing Options
3. Get Pre-Approved
A pre-approval letter:
- Shows sellers you’re serious
- Locks in interest rates for 60-90 days
- Helps determine your budget
4. Compare Loan Offers
Evaluate:
- Interest rates (fixed vs. floating)
- Processing fees
- Prepayment penalties
- Loan-to-value ratio
⚠️ Important: Never accept verbal promises. Get all terms in writing before signing.
5. Complete the Purchase
Final steps:
- Sign sale agreement
- Submit final loan application
- Pay remaining down payment
- Complete property registration