If you’re curious about buying your first Bukit Batok West Avenue 8 EC condo, it can be an exciting experience. But before you get too excited, make sure you know what you’re getting into.
How To Find A Condo
When you’re ready to buy a home in the city or town where you want to live for the long-term, there are two main ways that you can find a condo to purchase.
The first is through a real estate agent who specializes in finding condos to rent and sell within their market area. These agents are usually affiliated with local brokerage firms like Keller Williams, Century 21, Coldwell Banker, etc., so you may have heard of them. You may also come across a realtor who advertises on Craigslist, which is another great resource to help you find a place to call your own.
Another way to find a condo is by searching for one online using search engines like Google and Bing. While this method isn’t as common as the above methods, you may still find some listings when you do a search. The downside to this method is that you will not have access to all the information that a realtor would provide.
Condos Are Not Always For Renters
One of the most important things to remember about condominiums (which are also known as condos) is that they aren’t always for renters. In fact, many owners choose to live in their units while others use them as rental properties. If you see a listing that has “For Sale By Owner” written at the top, that means that the owner of the property wants to sell the unit rather than rent out the space. That being said, if you do spot a “For Rent” sign, don’t assume that the person living in the unit is looking for someone to move in. Many people list their units for short-term rentals because it provides extra income without having to deal with the hassle of renting.
Be Sure Your Credit Is Good Enough
Many times, investors will buy a single family home and renovate it to turn it into a condo. There are benefits to doing this type of renovation, but it requires more money upfront than buying a brand new condo. This is especially true if you have bad credit or no credit history at all.
If you have good credit, then you should check out several different condos to find the best fit for you. Even if you have bad credit, you can still apply for a mortgage loan from a traditional bank.
Think About Your Budget
You’ll definitely need to consider how much money you can afford to spend on a condo when you begin your search. It’s easy to think that you could spend up to $1 million on your dream condo, but that won’t be possible unless you’re willing to stretch your budget far beyond its limits.
There are certain factors that will determine how much you can spend on your condo. First, you must take into account your salary and other monthly expenses—mortgage payments, maintenance fees, utilities, et cetera. After that, you’ll need to factor in the cost of purchasing a condo. Your down payment will depend on your income and savings, plus any other financial assistance programs available to you. After that, you’ll need to include the costs associated with renovations, such as moving furniture and appliances, installing countertops, upgrading lighting, and installing plumbing fixtures. Finally, you will need to add the closing costs for legal documents and professional fees.
As a homeowner, you likely already have insurance coverage for your home—whether it’s homeowners, flood, fire, medical, liability, or even earthquake insurance. However, not everyone has the same set of policies for their condo building. You’ll want to ask your condo board or management company about the policies that they offer before proceeding with your purchase.
There are three types of condo insurance policies: comprehensive, specific, and builder’s risk. Comprehensive insurance covers everything except for damage or loss caused by natural disasters, whereas specific insurance only covers damages due to a covered peril. Builder’s risk insurance protects the building itself during construction or when it’s being renovated. Keep in mind, though, that these policies are often expensive and will require a higher deductible to cover repairs.
Getting Preapproved for a Mortgage Loan
Once you’ve found a condo that meets your needs, the next step is to secure financing for the purchase. When applying for a mortgage loan, you will need to present your lender with the following information:
- Your current and past employment information
- Details about any loans you currently hold
- A copy of your last 3 months’ worth of tax returns
- Details about any major debts that you owe
You will also need to show proof that you have enough cash on hand to pay for the down payment and closing costs. Depending on the lenders you select, they may request additional documentation regarding funds held in your checking or savings accounts to verify that you have sufficient funds to cover your down payment and closing costs.
Mortgage Closing Costs
When determining the total cost of owning a condo, you’ll also need to take into account other expenses related to closing the sale of your home, including title insurance and recording fees, transfer taxes, and attorney’s fees.