For some of us, buying an apartment is likely to be the most significant financial investment we’ll make in our lifetime, and if it’s our first time, we may have too many questions, which can make us hesitant about having our place. Before purchasing our first apartment, we will see how the benefits usually outweigh the challenges if we ask the right questions and do our homework. We’re always trying to make things easier for you. So here are some frequently asked questions that you may have if you’re a first-timer –
- Is the location of the apartment appropriate?
- What do I need to qualify for a loan?
- Is this a correct investment for me?
- Will it be handed over on time?
- How much do I need for a down payment?
- Should I get a fixed-rate or adjustable-rate mortgage?
- What is PMI?
- What is pre-qualification?
- What is the difference between pre-qualified and pre-approved?
- Am I ready to buy?
Anyone in the property industry will suggest focusing on the location primarily. Usually, if the apartment is in a prime location (i.e., developed areas with proper facilities), it will be highly rated and captivating. However, it depends on your priority. If your priority is a proper location, then you should always go for the highly-rated apartments. But in most cases, budget is a huge factor. So, if you have a budget, you can’t cross, then go through the options within the budget and find a decent location to buy your apartment. And make sure that the area has the facilities you need (i.e., schools for children if you have any, transportation services etc.). We always have something to offer you.
All the national/international banks have home loan services. The precise requirements of eligibility vary from bank to bank. However, in general, you must provide employment and salary records. The bank/financial institution can see from your bank records that you had a consistent flow of income, as in money coming into your bank account for some time, and then they will give you a limit based on your salary and then give you the loan. You will also have to put down some security, such as land, which the bank/financial institution can take away if the person fails to repay the loan on time.
For someone who’s investing on a large scale for the very first time, it can be tough to decide what’s the right decision to make. But there’s always a way to know if the investment is good for us. If you’re trying to buy an apartment, go through the provider’s requirements, and cross-check the provider’s credibility. It’s always best to choose a company that has a good reputation or is well-known. And yes, make sure that you’re ready to invest.
You’ve checked the company's background; prior buyers are suggesting you buy the apartment, but you’re still worried if the apartment will be handed over to you on time? Nothing to worry about. Check yo0ur official document, and do not complete all the procedures until you get an official date of hand-over. Usually, credible companies do not ask you to complete all the processes without giving you the legal documents and dates of hand-over.
In most cases, providers expect between 5% to 20% for a down payment. It varies according to the provider’s requirements and the type and length of the loan. Make a budget, set a goal, and stick with the plan. Saving is how most people come up with their first down payment.
As a first-time apartment buyer, one of the most common questions is getting a fixed-rate or an adjustable-rate mortgage. Fixed-rate loans have an interest rate that is fixed at the time the loan is taken out. Fixed rates do not fluctuate, whereas interest rates on adjustable-rate mortgages do. Adjustable rates are frequently lower than fixed rates at first but may rise after an introductory period. Apartment owners who intend to move within a few years may opt for an adjustable-rate mortgage because the interest rate may be lower in the short term. In contrast, those who intend to stay in a home for a more extended time may opt for a fixed rate for greater stability.
PMI is an abbreviation for private mortgage insurance. Most lenders require you to pay for PMI if you put less than 20% down on a home, and PMI protects the lender if you default on your loan payments.
Pre-qualification can give you an idea of how much of a mortgage you might be able to afford. It is sometimes possible to do it over the phone or via email, and the lender will only consider the information you provide. While pre-qualification is not a guarantee for a loan, it can be beneficial to help you learn your options.
Pre-qualification: Getting pre-qualified for a mortgage gives first-time homebuyers an idea of how much money they "might" be able to borrow. Because no information has been verified, this mortgage amount is not guaranteed. A lender's letter may only state that you are "likely" to be approved for a mortgage.
Pre-approval: Getting pre-approved for a mortgage, which is based on a real credit score, is even better, and it puts real estate agents and home sellers at ease. The buyer has more to offer when making a deal, which can be a significant advantage in a competitive market.
Last but not least, be sure of your abilities. Ask yourself the following questions when considering whether you’re ready to buy:
- Do I have a steady job?
- Have I been steadily employed for the last two to three years?
- Is my current income reliable for the foreseeable future?
- Do I have a positive bill-paying history?
- Do I have few outstanding long-term debts, like car payments?
- Have I saved for a down payment?
- Can I afford to pay a mortgage, taxes, utilities, and insurance?
If you have further queries about buying an apartment, please call us at +8801939666222 or mail us at sales@epicpl.com.