You should get loan approved b4 buying property

[Dennis Ng]

many people think that whatever accepted as "industry practice" in Singapore makes sense. Actually, some of the things commonly accepted in Singapore do not make any sense at all.

For instance, should you commit to buy a property before getting bank loan approval?

The answer is obviously no. Why? Because by doing so, you stand the risk of having to forfeit your Option money should you be unable to get a bank loan approved after you paid the downpayment.

In other more advanced countries, such as Australia, people understand the importance of getting a bank loan approved before buying a property. In fact, an Australian told me that typically a propsective buyer first get a loan approved before he/she goes out to look at properties.

And if the seller realised a person does not have prior bank loan approval, in fact the seller and the seller's property agent would not be interested to have any discussion becose the seller might just be wasting his time talking to people who might be interested to buy but didn't get loan approval.

Property agents in Australia also recognise the importance of buyers getting proper advice from Mortgage Brokers and property agents in Australia do not try to "advise" on the financing part which is NOT his/her expertise.

In Singapore, this is what is being "currently practised".

1. people buy a house first.

2. next, property agent just "refer" buyer to 1 or 2 bank officer on Home Loans. The buyer just go along without realising that there're 10 financial institutions offering more than 100 different Housing Loan packages, and that by going with 1 or 2 bank, the buyer CANNOT assured that he/she is getting the BEST Housing Loan package available in the marekt.

3. Worst still, some property agents refer you to a lawyer that charges EXTRA legal fees of $500 to $900 on you.

What it should be done instead?
1. buyer seek Mortgage Consultancy eg. http://www.HousingLoanSG.com (Singapore's leading Mortgage Consultancy firm) to get advice on loans. You can just email to us at info@HousingLoanSG.com or call us at 6737 8801 or 6339 9255.

2. buyer decides which bank and which package and we'll help buyer to get PRIOR approval before committing to buy a property.

3. after getting loan approval, buyer can then go out and look out for properties to buy.

4. We help you negotiate with law firms approved by bank to get LOWER legal fees. The savings in legal fees can range from $500 to $900.

by doing it this way, your interest as the buyer is "taken care of". You can assure yourself of NO risk of your loan being rejected and NO risk of having your Option money forfeited.