CONTRIBUTOR
Praying for luck Mortgage approval
Words by Miichael Yeoh
In the picture , what do you think I am doing ? Praying for money to drop from the sky or hoping for luck to come by ?
Well , I don ’ t depend on them . I don ’ t believe that money will just drop from the sky or a miracle will happen . If a car were to break down , you will need a mechanic to fix the problem . He will follow a series of steps to repair the car and to make sure that your car is running again .
Likewise , when it comes to mortgage approval , you cannot wait for miracles to happen . To me , luck has nothing to do with mortgage approval . Many borrowers and agents like to photocopy stacks of financial documents and submit them to every bank that they can find for approval . Is this the right way to go ?
Point is , never expose yourself . Every bank has different approval criteria . Some banks might not favour you , but some might . I had a case once , this person ’ s Debt Service Ratio was very high at 150 %, which is higher than the normal 70-85 %. So of course , the banks rejected his loan . I , however , reviewed his documents and managed to get 70 % loan approval .
This is a fine example where the borrower :
Well , did you know that every time your documents are submitted , the banks will record and send them to Bank Negara which in turn will update the Central Credit Information System ( CCRIS ) every month ? Wether your loan is approved or rejected it will be updated on the last page of your record . Let ’ s say Bank A rejected your loan , Bank B , C and D also rejected you , but Bank E approved your loan . However , because so many banks rejected you , there ’ s a chance that Bank E will also reject your loan in the end .
1 . Knows himself very well . 2 . Checked his credit status . 3 . Found the best suitable bank for him .
On the last step , you ’ ll have to do more work . You ’ ll need to find out each bank ’ s approval criteria and also the different types of documents for approval . You are not buying a RM1,000 property but hundreds or even millions worth . It is good to do extensive research first as it will be hard to go back from scratch when your loan has been rejected . It ’ s always primarily easier to diagnose a problem first .
I hope this article will assist you in making the right judgement . If you want to read more of my articles , go to www . miichaelyeoh . com www . PropertyHunter . com . my 27