At Singapore Expat Choice, we have include some useful information to assist you if you are selling or buying a property in Singapore. Beside the buyer's and seller's guide, we also have a section that focuses on financing such as housing, bridging and renovation loan, insurance and legal matters such as conveyancing, power of attorney and etc.

The latest transaction prices for Singapore private housing and HDB flats can be also found here.

THE BUYING PROCESS

Purchasing a home is probably one of the largest transaction you’ll make involving a loan. Before making a commitment on a home, WJ Lloyds Properties can recommend you lending institutions with competitive rates. Sit down and discuss your loan application process. They should be able to give you an assessment, determine your eligibility for a home loan and also determine the budget best suited for your needs. After this process, go out and find your dream home.

A pre-approved mortgage ensures that you have made all the right financial considerations upfront.

Finding

Once you know how much to invest, the next step is to find the property that best suits your needs. You’ll need a professional real estate agent. WJ Lloyds Properties can help you. WJ Lloyds property consultant will do all the research to find that “perfect home.” WJ Lloyds property consultant can recommend you a good real estate lawyer to tell you what needs to be completed prior to a sale, look over any contracts and ensure you’re making the right decision before signing on the dotted line. In short, buying a home is not simple. Register now. WJ Lloyds Properties will be the one who knows what’s going on in the market and who to contact. WJ Lloyds property consultant can connect you to the right people.

Closing the deal

Finally, there is the closing, or settlement. An attorney usually does it all. He/she handles all the paper work and can work closely with your lending institution. Again, WJ Lloyds property consultant can guide you through this process and make sure everything flows together smoothly.

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LOOK AT YOUR FINANCES

Before making a commitment on a property, WJ Lloyds property consultant can arrange different bankers to pay you a visit and discuss your loan application process.
 

They should be able to give you an assessment and determine your eligibility for a home loan and also determine the budget best suited for your needs. After this process, go out and find your dream home. A pre-approved mortgage ensures that you have made all the right financial considerations upfront.
 

Your next step after to loan application
You may be faced with these issues:
  

Unacceptable Credit

• Volunteer a family member as a co-borrower to strengthen your credit file or help you to qualify.

• Put more money down if you can. Even another 5% can help.

• WJ Lloyds Properties can also recommend you other bank institutions and lender who deal with higher risk loan. If you have paid as much in rent as your new payment, justified your ratios by and show them you have already been paying this much monthly. Provide copies of cancelled checks or a letter from the landlord verifying timely payment

• Persuade the lender that your income is on the rise. If you are expecting a raise or bonus in the near future, try to verify it for the lender.

• Pay off some of your debt to lower the ratio if you have the cash.

• Consolidate your short term debt to lower your monthly payments.
   

 Employment History

• If you moved from job to job to improve your income or opportunities, provide a statement and proof of that to the lender.

• If you had a stable history prior to the last two years, which is what the lender is verifying, provide a letter of explanation for the recent instability and evidence of prior stability.

• If you have had many jobs, but have historically made about the same income every year and have good credit, persuade the lender to consider your history "stable" on the basis of consistent average income and sound financial management. Self-employed average income.

• If you expect your income to increase in the near future due to upcoming contracts or more customers, try to verify that information for the lender. A good loan officer can help you build your case.
   

Self Employed income, commission, or bonus to be considered

• Self-employed income, commission, or bonus.

• Get a co-borrower (usually a family member) to help you qualify.
   

Insufficient cash to close the deal

• Insufficient cash.

• Get a gift from a family member.

• Ask your lender about low down payment programs.

• Utilise your CPF funds.
   

Property Appraisal Low

• The appraisal is usually ordered by the lender and is used by the lender to insure they are not over-lending. It also protects you from overpaying.

• The result of a low lender's appraisal means the lender will figure your loan amount LTV as a percentage of the appraised value of the property, which will result in a lower loan amount than you requested. For instance, you request an $800,000 (80%) mortgage (meaning you are putting 20% down), on a $1,000,000 sales price. The property appraises for only $980,000. The lender will now refigure your loan amount at 80% of $980,000 or $784,000, so you with have to put another $16,000 down to get to an 80% LTV. Or you may still be able to get the $800,000 mortgage but will have to pay mortgage insurance, since you are exceeding 80% LTV.

• If you can get the same loan amount regardless of the low appraisal, then the contract may require you to go forward with the purchase. Check the contract and/or speak with a real estate attorney to determine.

• Low appraisals are generally a good time to renegotiate price with the seller. If you are going to take this tact, you should provide a complete copy of the appraisal to the seller along with your written request for a price drop based on the attached appraisal.

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CHOOSING A NEIGHBOURHOOD

Which district should you move to? Let’s take a look at the following data before you make your decision.

• Density and population

• Availability of schools

• Amenities

• Resale price history

• Infrastructures

• Transportation access

• Places of worship

Once you know your budget, the next step is to choose a good real estate agent. WJ Lloyds property consultant will help you select an area in which to buy. You will need to choose some neighbourhoods to concentrate on. Issues to consider would be transportation, location of schools, places of worship, your work location etc. Click here to look at the district guide to determine where you want to live. Then within the location you can narrow it down to which neighborhood is best suited for you. You may look for neighbourhoods right on the edge of more expensive and highly sought after areas. These areas sometimes experience faster appreciation than more established neighbourhoods.
 

Drive and walk around the neighbourhoods, talk to neighbours and merchants and visit the schools. To find out about future plans for the area, test your commute time by driving or taking public transportation to and from work during rush hour.
Make a list of what your priorities are - schools, transportation, proximity to work, views, age of housing, places of worship, etc. Assess neighborhoods catering to your priorities while also considering the resale factors.
 

Past History - Check out the going prices. Don't overpay. Check with WJ Lloyds Properties. WJ Lloyds property consultant would be able to tell you the going rates and the latest transacted prices.

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HOUSE INSPECTION PROCESS

• House appraises low

• Your financing is declined

• Title search reveals problems

• Termite inspection

• Home inspection reveals deficiencies and buyer asks for repair or replacement

The home inspection reveals a few problems and buyer asks for repair or replacement. The contract will indicate what you can require the seller to fix or replace and what you can simply ask them to do.

You can either ask the seller to have the work done prior to closing or you can ask for a discount where you could do the repairs. More importantly, you should be most concerned about any structural damage and replacement or repair of expensive items. Perhaps you could ask the seller to do only these things. You can do the small things yourself. The seller may be able to accommodate your requests with a few large items rather than an extensive list of small repairs.

If there are serious problems such as foundation cracks, leaks in the roof, faulty wiring or plumbing problems, get a professional inspector in for a look. If the problem is real, and you still want the house, push hard for the sellers to repair it. Now that they know of the problem, they will likely have to disclose it to other potential buyers. It will probably come up in another buyer's inspection as well, so they might as well deal with it now.

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HOUSE APPRAISAL

The appraisal is usually ordered by the lending institution and is used by the lender to insure that they are not over-lending. Indirectly, it also protects you from overpaying. The lender will calculate your loan amount as a percentage of the appraised value of the property, which will result in a lower loan amount than you requested.
 

For instance, you request an $800,000 (80%) mortgage (meaning you are putting 20% down), on a $1,000,000 sales price. The property appraises for only $980,000. The lender will now refigure your loan amount at 80% of $980,000 or $784,000, so you with have to put another $16,000 down to get to an 80% of the loan amount. Or you may still be able to get the $800,000 mortgage but will have to pay mortgage insurance, since you are exceeding 80% LTV. If you can get the same loan amount regardless of the low appraisal, then the contract may require you to go forward with the purchase. Check the contract and/or speak with a real estate attorney to determine.
 

Low appraisals may sometimes be used to renegotiate the selling price with the seller. If you are going to proceed with, take along a complete copy of the appraisal to the seller with your written request for a price discount based on the appraisal. If you really want to buy the house and think it is worth the price you offered, work to get the higher appraisal. Provide the lender with all the comparables you or the seller have researched and your notes. Check the appraisal for accuracy and challenge any inaccuracies. The lender might be willing to have another appraisal ordered (you can split the cost or the seller can pay for the second appraisal), especially if the first one has errors.

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NEGOTIATING

Be flexible

If you have a price in mind, that’s good. But don’t be so rigid to loose the property over a few dollars a month on your mortgage payments. Never say never. Take some time to rethink your decision. Be willing to give and take. Each time you increase your offer, ask for something in return. Ask them to include the appliances, curtains, lighting or even furniture.

Do your homework
Before you negotiate the offering price, do your homework and know the property’s real value. Knowing the market with comparable homes sold and bringing the information to the table will help bring down the seller’s price. You could get all these reports from WJ Lloyds property consultant.
 

Close date

When you have negotiated a good deal, WJ Lloyds property consultant will collect from you the option money (usually 1% of sale price) and exchange with the seller for the signed option to purchase or sales and purchase agreement.

Know when to walk away
If the negotiations are going nowhere and the seller is not reasonable, have a look at other properties. There's always a better one.