Asked by krish
is i have to sign sole and purchase first or apply bank loan first
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1 Answer
Krish,
It is always good to know whether you are able to obtain a loan based on your income before you proceed to commit to a property. At least you are able to know what type, location and price of properties you can afford to purchase. Once you commit to purchase to sign the Letter of Offer your earnest deposit of 3% will be forfeited by the Seller unless you clearly request that it is subject to a bank loan approval within a 14 days time frame. If you sign the Sale & Purchase Agreement whereby you pay 10% of purchase, it will also be forfeited by the Seller if you fail to proceed to pay the balance 90% purchase price within 3 months + 1 month grace period due to your failure to get a bank loan. Majority of Sellers (if not 100%) will not agree to a S&PA subject to a bank loan approval.
David Wong
Principal
QUANTUM real estate
+60193330573
+60377289108 Read More
It is always good to know whether you are able to obtain a loan based on your income before you proceed to commit to a property. At least you are able to know what type, location and price of properties you can afford to purchase. Once you commit to purchase to sign the Letter of Offer your earnest deposit of 3% will be forfeited by the Seller unless you clearly request that it is subject to a bank loan approval within a 14 days time frame. If you sign the Sale & Purchase Agreement whereby you pay 10% of purchase, it will also be forfeited by the Seller if you fail to proceed to pay the balance 90% purchase price within 3 months + 1 month grace period due to your failure to get a bank loan. Majority of Sellers (if not 100%) will not agree to a S&PA subject to a bank loan approval.
David Wong
Principal
QUANTUM real estate
+60193330573
+60377289108 Read More