What are the steps for buying a building using finance from a Thai bank

[ubonr1971]

Ive been looking at buildings in our small city for 1 yr. Recently Ive developed a relationship with the loan officer at our local KTB. The wife and I have a profitable business and provided 3 to 4 months of our financials (daily money book) and bank statements. I asked him to send to his head office in bkk for indicative approval. He said more than likely its not a problem to borrow the amount that we want. He said he confirmed this with the relevant team in bkk and said to me keep looking for a property. 

 

I finally found a suitable building that we like. Have negotiated a price and a deposit which represents 3.5% of the sale price. We spoke to our attorney who indicated that we would sign a contract and pay a deposit after the bank finance has been approved. 

 

I just read a note in my documents from a meeting I previously had with the KTB guy. He told me that one rule is that a contract must be signed between the wife and the vendor before applying for finance. ie we must give this contract to the bank and then they proceed with our application. 

 

Can anyone confirm whats the exact process. If the bank is correct and we sign a contract and have a clause that its subject to bank finance being approved and subsequently pay a deposit... how do we get the deposit back if he refuses. Presumably we have to take him to court which is a BS result. 

 

Any opinions are appreciated

thanks

 

 

[blackcab]

Moved to the Real Estate forum.

[worgeordie]

I doubt you would get your deposit back,if the finance

does not come through,as the deposit is for holding

the property, unless you can put into writing FIRST

before you give the deposit,that it will be returned

if the sale is unable to go through.

regards worgeordie

[alacrity]

The vendor is unlikely to agree to a return of the deposit if you can't finance the deal within a stipulated time.

After meeting the financial need the deposit will be deducted from the sale price.

 

Would be a good idea to confirm potential financing before signing any contract. After that the lender will need/insist to inspect the property before providing finance.

[1FinickyOne]

Well, good luck to you... 

 

I don't know of any bank that would give a mortgage with only 3.5% down... that throws all the risk on them... 

 

Also, 3-4 months of financials is nothing.... 

 

I cannot imagine a bank anywhere doing this - - unless maybe you are really good friends with this fellow... 

[ubonr1971]

17 hours ago, alacrity said:

The vendor is unlikely to agree to a return of the deposit if you can't finance the deal within a stipulated time.

After meeting the financial need the deposit will be deducted from the sale price.

 

Would be a good idea to confirm potential financing before signing any contract. After that the lender will need/insist to inspect the property before providing finance.

The bank are saying that they need a signed contract before they can proceed with an application. Its quite bizzare the way things are done here. The vendor says he's ok to wait for us to pay the deposit until after we have 100% approval. Im going to ask for that to be in the contract

[ubonr1971]

2 hours ago, kenk24 said:

Well, good luck to you... 

 

I don't know of any bank that would give a mortgage with only 3.5% down... that throws all the risk on them... 

 

Also, 3-4 months of financials is nothing.... 

 

I cannot imagine a bank anywhere doing this - - unless maybe you are really good friends with this fellow... 

Sorry but you misunderstand my narrative above. The first time I saw the guy I just gave him 3 to 4 months of financials to get an idea of our maximum borrowing capacity. 

 

Now that we have found a building he says we have to give him 6 months financials and 12 months bank statements. 

 

Re your comment about 3.5%.... What they do is value the building on their books at much higher than the purchase price. Its just the way things are done here

[advancebooking]

Im interested to know the outcome of this thread as well

[ubonr1971]

The update is that we added a clause in the contract stipulating that a deposit will only be paid on confirmation of finance being approved. We sign contracts tomorrow. Give this to the bank and they officially start the application for a loan assessing all our docs. Takes 2 to 3 weeks to finish