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Advice Needed For Housing Loan

 
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k_wong



Joined: 27 Sep 2007
Posts: 6
Location: Subang Jaya

PostPosted: Thu Sep 27, 2007 11:53 am    Post subject: Advice Needed For Housing Loan Reply with quote

Hi, I am a newbie here.

I'd like to get a 90% loan for a subsale property I booked (freehold, landed, completed & selling at 193k in shah alam).

I have been applying for few banks, and one foreign bank has came back with decline status and it makes me worry on my other applications that are still pending.

Here's my situation:

I am young (24 yrs old), employed with 3 years working experience in a MNC. My annual income is approx. 43k with my individual commitments of approx RM 1300 (car loans & credit cards) monthly. In view of my insufficient income to support my desired housing loan (repayment of RM 1000), I've got my parents to support me in this matter. However, they are both govn pensioners and at the age of 60++ yrs old. Their monthly joint incomes made up to RM 2300.

The bank that declines me mentioned that my parents' income are not to be considered as major income as those are their pensions. On the other hand, my financial commitments have been really high (2 cars + 2 cards - high geared).

Is there anyway that I can secure a housing loan in this situation? We are not very financially strong, there is not other financial support ie FD, bonds, besides a property back in my hometown which has been fully settled (market value is >200k). Can I use the property as a colletarel to secure a loan?

We have been paying rentals of RM900 every month for 3 years and I see that as a waste of our money.

I am running out of time now as it is almost two weeks since I booked and the vendor is urging me to sign the S&P.

Thanks for your kind advice!
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preacher



Joined: 20 Oct 2005
Posts: 470

PostPosted: Thu Sep 27, 2007 2:07 pm    Post subject: Reply with quote

Congrats to buying a property as a young age. Just to give you a brief explaination on some General Banking rules.

As a "general guideline", your total monthly loan commitments should not exceed 1/2 of your monthly income. Thus 43,000 /12 = RM3,580. 1/2 = RM1,790 less your current loan commitments of RM1,300 = RM490 for your monthly housing loan commitments. Now, to be honest, thats a tough number to play with, even if you were to extend your housing loand to 40 years.

Some suggestions:

(1) Buy the house under a joint-name with another person who is working, say gf / bf

(2) Show other sources if income, say Bonus, rental income from other property

(3) Reduce your current gearing, its okay to have 2 cards, but why 2 cars?

(4) Shop for other banks.

Anyway, is the bank that declined you a foreign bank? Most local banks will accept parents as guarantors.

My advice is not to pledge the other house as a collateral cos it took so long to finally clear that loan. In the event something goes wrong, you might lose both houses.

Besides, loans are given firstly based on your repayment capability then only based on collateral amount cos banks are not in the biz of foreclosing on collaterals.

Keep trying and good luck.
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k_wong



Joined: 27 Sep 2007
Posts: 6
Location: Subang Jaya

PostPosted: Thu Sep 27, 2007 2:29 pm    Post subject: Reply with quote

Hi preacher,

Great thanks for your comments. Well, not much other source of income available at this moment, all have been included Wink

Perhaps I might want to consider the 3rd option, since my 2nd car for my parents is not so frequently used.

Alright, will pray hard on my other applications then!
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emyght



Joined: 06 Dec 2006
Posts: 77
Location: KL

PostPosted: Thu Sep 27, 2007 3:09 pm    Post subject: Reply with quote

Hi Wong

There are a couple a banks that applies the 'single bank' commitment rule. This means that they will screen through your exposure within the bank only, and are less stringent on your overall commitments elsewhere. But this doesn't mean that they will totally disregard the rest.

In your case, the overall commitents are indeed too high. No matter how you look at it, the most important thing is to ensure that your repayment records are prompt now and in the future.

As for your parents, I think they can become joint borrowers but their age may pull down the maximum length of the tenure. Most banks allow up to age 65 and 70. So, go for banks that take the youngest age instead of averaging it out.

Another tip, for borrowers in your situation. Not to apply through too many banks at one go, coz it may be seen as an act of desparation and if 1 or 2 banks starts rejecting your application, other lenders may be influenced. Remember they can check the central records.

Plan your moves, you might be able to increase yr chances of qualifying through understanding on how certain banks work. Speak to the bank officer who knows the policy well. Next time, you may want to secure the financing first before committing to a purchase.

Good Luck..
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k_wong



Joined: 27 Sep 2007
Posts: 6
Location: Subang Jaya

PostPosted: Thu Sep 27, 2007 5:07 pm    Post subject: Reply with quote

Hi emyght,

Thanks. My repayments would be pretty fine so far. In fact, I've also put my parents as co-borrowers but the earlier bank that decline says that their income couldn't be taken into consideration since they are retired. I am not too sure about local banks cos everyone seems to say "OK No problem" to me... and I don't wish things turn out in a mess later. Sad

Perhaps are you able to let me know which are the banks that you'll recommend me to go to in this case? My email is angelkathylovs@hotmail.com.

Many thanks.
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Mortgage2you



Joined: 28 Sep 2007
Posts: 8
Location: Klang Velly

PostPosted: Fri Sep 28, 2007 1:29 pm    Post subject: Reply with quote

Dear K_Wong:

Noticed your lond application issue :

Before we are find out the solution , below are my enquiry :

a) Noticed U have 2 credit card , can I know Total Credit limit , plus your's Useage percentage. ( How your past 1 year payment record ? )
b) Noticed U have Car Loan , Can I Know the exactly installment by each month . ( How your past 1 year payment record ? )
c) Noticed currently u have to pay RM900/month for the rental . Do you sign any tenancy aggreement?( Under how many persons name? )
d) Please to advice that , I m strongly not agree to mortgage your hometown house or add your parent as guarantors in the loan .

Please reply me as soon as possible.

* 75% possible can get the loan approval, without adding your parents as guarantors and hometown house . ( Subject you have Tenancy Agreement).

Any private reply , you can e-mail to : Mortgage2you@yahoo.com


May God Bless You !

Thanks and Regards

Mortgage2you@yahoo.com
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k_wong



Joined: 27 Sep 2007
Posts: 6
Location: Subang Jaya

PostPosted: Fri Sep 28, 2007 2:55 pm    Post subject: Reply with quote

Hi, I've tried to send an email to you but there seems to be a problem with your account. Please help to verify.

My repayments for my cards & cars are fine so far, and the tenancy agreement is under my own name.

Btw, may I know why is it not advisable to put my parents as co-borrower? And which financial institution are you from?

Thanks.
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Mortgage2you



Joined: 28 Sep 2007
Posts: 8
Location: Klang Velly

PostPosted: Fri Sep 28, 2007 6:00 pm    Post subject: Reply Reply with quote

Dear K_Wong:

a) I had go through ur reply , It is very good news due to tenancy agreement still valid ( Btw mature date ),which is under personal name.
b) Noticed you are good pay master. ( Subject prompt record-as perconversation).
c) Your Total debt ratio is met ours requirement(Total debt ratio btw 75% ,which including the new installment) .I Just wonder your credit card useage percentage is high . ( Anyway ,We will try to mitigate by tenancy agreement , which RM900/month) .
d) Not encourage for Co-borrowers ,due to age issue ,plus unnecessarily to add Co- borrowers on this loan .
e) Thanks your advice for checking e-mail act . ( You can try my other act : mortgage2you@hotmail.com , mortgage2you@gmail.com

For reminded , your approval is totally depend on proffessional of the banker , who writting the customer profile recommendation to the Bank underwriter.




I believe that , your loan will be approve , subject to furnish tenancy agreement and your property is own occupancy .


Thanks and Regards

Have a nice day.


Kindly regards;
Mortgage2you@yahoo.com
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Mortgage2you



Joined: 28 Sep 2007
Posts: 8
Location: Klang Velly

PostPosted: Mon Oct 01, 2007 10:38 pm    Post subject: Reply with quote

Dear K _Wong:



Noticed your car loan payment habit is slightly late. (Which delay on 2 or 3 weeks, but not over one month) (As per conversation by e-mail)



Please attach below documents for loan application:

a) IC

b) Booking receipt or S&P ( Sales and Purchase agreement)

c) Title

d) Latest 3 months pay slips

e) Latest 3 months bank statement (Which salary credit in) and EPF statement.

f) Carbonize EA Form 2006

g) Tenancy agreement. ( must stumping and valid )

h) Personal Saving /FD / Insurance ( Investment) / Mutual Fund ( If applicable)

i) Business Card





Please furnish below detail on next e-mail, for further process:



1) Full name ( Which follow IC ) & IC number

2) Contact number

3) Venue for appointment and when

4) New property detail ( Which is new purchasing ) ;

a) Type of property

b) Land area and build up area

c) Describe the location and condition of the property

d) Under master title or individual title

(If under master title please furnish the developer name, plus developer registration number- you can refer S&P)

e) All vendors name ( Follow IC ) & IC number

f) Purchasing Price

5) S&P Lawyer? Which branch?



We are please to arrange appointment with you on soon (For office hours and lunch time only)


Motgage2you@yahoo.com
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k_wong



Joined: 27 Sep 2007
Posts: 6
Location: Subang Jaya

PostPosted: Fri Oct 05, 2007 5:22 pm    Post subject: Reply with quote

Hi,

Thanks a lot for your kind reply. I have already obtained my loan. Thank you.
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preacher



Joined: 20 Oct 2005
Posts: 470

PostPosted: Fri Oct 05, 2007 6:38 pm    Post subject: Reply with quote

congrats man, mind telling us how it was arranged?
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johnbeckestate



Joined: 15 Apr 2008
Posts: 36

PostPosted: Fri Apr 18, 2008 3:11 pm    Post subject: Reply with quote

obviously you haven't been watching or reading about the mortgage meltdown. 30 year fixed and certain lenders will ignore the rip off PMI crap. Shop around but insist on 30 year fixed.
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