Many people complain it is hard to get a house loan approval today. Developers also have a hard time to sell their properties. Even though there are many schemes offered by government, in reality it is hard to get a house loan approval. Is it really that hard?
I have an acquiantance/mantee who have successfully get a 100% house loan recently. Yes, it is hard to get a loan. He spent about one month sourcing different banks to get the best offer. Initially, he was offered for a 90% loan. At 90% loan, the price is already about the same price of the last commercial transaction in the area. But, the area he want to buy is a very good location. Thus, he does not give up and look for a 100% loan.
Yes, this also means he needs more time to secure a loan. He is still young. Time is abundant. But cash is expensive. Therefore, a 100% loan worth more to him than a quick loan approval. In addition, it is harder to find a house to buy in a good location than the loan to buy. House owners realize the property in their area are in high demand, rent keep rising, and there is almost no vacant house. A vacant house is quickly fill within days.
So, if you are an investor, are you looking for a beautiful house to invest or are you looking for a 'beautiful' area? For banks, they want to secure their collateral. If home owners cannot afford to pay the loan in the future, banks have no problem to auction the houses to get back their money.
Thus, to successfully buy a property, you must also know how a bank think and operate. What I have written here is just a small part of bank mindset. A more detail information and tricks can be learned in my short courses.
Happy Investing!
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