FAQ's for first-time property buyers
We have to accept the fact that buying a property in Pakistan is possibly the biggest investment of a common man. A man with lifetime savings and average income thinks a hundred times before actually investing in real estate. There is no doubt in the fact that real estate would never leave you helpless. The money you invested in real estate will always increase even if with a small ratio. But when it comes to finding a perfect place to live and spend life with your family, things get a little complex.
It is important to ask yourself the right questions before finally purchasing a property. To make it easier for you to make a decision, here are the most frequently asked questions by the first-time purchasers of property. If you have any other question than this, feel free to reach us through our website or offices in Lahore, Karachi, Islamabad, and Bahawalpur.
1- Buy or rent?
This is the very beginning stage of making the right decision. The higher prices of the property would try to convince you to rent a property instead of purchasing one for yourself. Your doubts at this stage might refrain you from making the right decision. Rent is a long-time process and involves every month expense while purchasing a property is different. It can be hard for you to spend a huge amount altogether but the peace of your own house worth it. You would be answerable for delay in paying rent to the owner. You can be in different circumstances during this stage. To make it simpler for you, take a notepad and write answers to the following questions.
a- Do you have a sound job?
b- Are you working with chances of growth?
c- Do you have enough savings that after purchasing a property you would be able to live a sound life?
d- Are you bound to pay any outstanding debts?
e- If you are thinking to get a loan, would you be able to pay it within the given time?
2- How much do you need for a down payment?
Saving a huge amount for a down payment is the first step for purchasing a property. It can be hard for you to pay a huge amount at the beginning but it smooths the remaining payment process. Down payment may vary between 5% to 20%, according to the will of the property owner. You can negotiate the payment ratio but it will still be a huge amount.
To make it easier for you to pay a down payment, start with making the budget. Find a property and get information about the down payment ratio. Once you know about the sum of an amount you are going to pay at the beginning, start working hard to earn it. Make it your goal and stick to it.
3- Difference between Pre-approved and Pre-qualified?
the better option is getting pre-approved for a mortgage, based on a real credit score, and it also eases the real estate agent and owner at the same time. The buyer has more to offer when making a deal and in a competitive market, this is a good gesture.
Getting pre-qualification for a mortgage provides first-time property buyers an indication of an estimated amount of how much they would need to borrow. The money received as a mortgage amount is not guaranteed because no information is verified. It will just a letter that would state “ ____ (your name) is “likely” to be approved for a mortgage”.
4- What are the Benefits of home owner’s tax?
There are a few most known benefits of homeowner’s tax.
1- Loan discount point, ratio, and origination fees are deductible in most cases.
2- Mortgage interest and real estate taxes are deducted as a benefit for homeowner tax benefit
3- Homeowners enjoy capital gain benefits.
5- How to get the best mortgage?
It takes a long to study and learn about the different rules, rates, and terms of mortgages. Once you have discovered your dream home, it is time to apply for a mortgage. For speedy mortgage finance, here are some tips:
1- Seek help from a specialized mortgage broker.
2- Meet a lot of brokers before finally involving with one.
3- Learn all the rules and regulations about mortgage finance.
4- Consult with different mortgage association before making a final decision