Approved Home Loan

[TheAceFace]

My missus has just informed me that the house we are looking to buy, the bank have approved the finance loan. They have given us only 70% Do they think foreigners are made of money

When I first submitted all my documents to the housing company they said "no problem" the bank will be fine "for sure". I should have known better.

Has anybody got any advice on the matter, is it possible to negotiate with the bank for more of the percentage of the loan, around 90%?

I have a meeting with the property developer on Thursday to see what he say's...should be fun

Cheers

TAF

[lopburi3]

My missus has just informed me that the house we are looking to buy, the bank have approved the finance loan. They have given us only 70% Do they think foreigners are made of money

When I first submitted all my documents to the housing company they said "no problem" the bank will be fine "for sure". I should have known better.

Has anybody got any advice on the matter, is it possible to negotiate with the bank for more of the percentage of the loan, around 90%?

I have a meeting with the property developer on Thursday to see what he say's...should be fun

Cheers

TAF

<{POST_SNAPBACK}>

The property may not be worth the price you are paying in the bank's eyes; and in any case do not believe any bank would lend more than 80%. Good luck but believe 90% expectation is a little high.

[Dragonman]

My missus has just informed me that the house we are looking to buy, the bank have approved the finance loan. They have given us only 70% Do they think foreigners are made of money

When I first submitted all my documents to the housing company they said "no problem" the bank will be fine "for sure". I should have known better.

Has anybody got any advice on the matter, is it possible to negotiate with the bank for more of the percentage of the loan, around 90%?

I have a meeting with the property developer on Thursday to see what he say's...should be fun

Cheers

TAF

<{POST_SNAPBACK}>

The property may not be worth the price you are paying in the bank's eyes; and in any case do not believe any bank would lend more than 80%. Good luck but believe 90% expectation is a little high.

<{POST_SNAPBACK}>

Would only give us 70%. Thais around me have 90%, but they have cheaper houses. Don't know how much you're looking at for mortgage but if generally over 1 million baht, banks are loathe to give more than 70% as a lot of the re-sale market is excluded. I need only look around my estate area and see empty reposessed properties which cannot be sold and are now derelict.

[TheAceFace]

Cheers Lb3

The thing that had annoyed me most was the fact that I ran through all the figures with the property managment, and it worked out to be very affordable and cheaper to what I pay at the moment for rent.

After submitting all the forms and laying a small % down all the facts and figures made sense and we even confirmed the monthly payments. it's just a kick in teeth for the bank to come back like this....shall see what I can do on Thursday.

[lopburi3]

Cheers Lb3

The thing that had annoyed me most was the fact that I ran through all the figures with the property managment, and it worked out to be very affordable and cheaper to what I pay at the moment for rent.

After submitting all the forms and laying a small % down all the facts and figures made sense and we even confirmed the monthly payments. it's just a kick in teeth for the bank to come back like this....shall see what I can do on Thursday.

<{POST_SNAPBACK}>

I would triple check those figures as I can not imagine a 90% finance being cheaper than rent. Rents are one of the bargains here. Be very careful with developers and even banks as they are not know for honesty - it is very much a buyer beware situation buying a home.

[TheAceFace]

Cheers all for the info, I guess I may be lucky then as the initial price is 5mil. Still have to find more of down payment now though.

[Dragonman]

Cheers all for the info, I guess I may be lucky then as the initial price is 5mil. Still have to find more of down payment now though.

<{POST_SNAPBACK}>

Going by the mortgage I pay. 4.5 million baht would be 22,500 per month for first year; 26,000baht 2nd year, and 30,000 baht for remaining period. This was over 25 years.

[TheAceFace]

Thanks DM

Thats similar to the payments I was shown. The full house price is 5.2m. If I receice 70% then would I have to come up with the remainder as a downpayment or could I pay this over a number of months, I think it works out around 1.5m? Im out of Thailand until Thursday and it has been difficult in locating the developer..thats why I ask, so I can be prepared when I get back.

Cheers

TAF

[lopburi3]

In my Bangkok Mooban a house is for sale at 4,700,000 but rents for 10,000 baht per month.

[TheAceFace]

Which Mooban is that Lb3?

Location is important to me, I am looking pattanakarn 51 on a new housing project. The buying price has already risen 1m+ in 8 months.

[Sumitr Man]

TAF:

First of all, I very much hope you get this situation sorted out.

However, you cannot say you were not warned

http://www.thaivisa.com/forum/index.php?showtopic=35482&hl=

If I remember, I suggested you discuss this with your developer then. It is highly unlikely that you'll get any sympathy from the developer or the bank. In fact, if I were you I would start looking and applying for some short-term loans (personal loans, GE Capital loans, etc.) ASAP if you want this deal to close.

SM

[TheAceFace]

Yep you were right SM, even spoke with the developer as I will do again this week.

I have some cash saved up although that was to help with the furnishings of the house. Just wish everything was not so complicated here!! however this is LOS and I have been here a while to know somethings will never change.

Thanks again for the concern SM, fingers crossed I will be ok.

TAF

[lopburi3]

Which Mooban is that Lb3?

Location is important to me, I am looking pattanakarn 51 on a new housing project. The buying price has already risen 1m+ in 8 months.

<{POST_SNAPBACK}>

Older mooban on Soi Chok Chai 4 of about 80 sq wa, 3 bedroom homes.

[ray23]

Which Mooban is that Lb3?

Location is important to me, I am looking pattanakarn 51 on a new housing project. The buying price has already risen 1m+ in 8 months.

<{POST_SNAPBACK}>

Older mooban on Soi Chok Chai 4 of about 80 sq wa, 3 bedroom homes.

<{POST_SNAPBACK}>

Welcome to the farrang world, 30% down for us seems to be the norm. We haev been fighting this in the form of shopping loans for months. It is either 30% or 50% for a farrang loan unles of course your spouse has a job that would qaulify her for the loan. That just dosn'r happen much. In some cases I understand it, some guy gets tied up in the Thai bar girl games. Figures out that he is being had and walks. The girl can't pay the l;oan and they eat. Some of us have been married for years and have lived here for years. Qaulify for the loans, but can't get them because of the bad experience of the lending institutions.

Persoanly if the deal isn't right I won't do it, it's just a house that I can't own anyway, rents are cheap, the right deal comes along then I will make the plunge but only the right deal.

It is a common practise that builder used to low ball the down payment to get you to sign, knowing they can't provide the financing they say they can. Then leave it up to you to keep the sweetie happy, knowing you have money coming out of your ears. If you have to have that bad then do what you got to do, but remember one thing don't bring anything here you can not aford to lose, because when this is all said and done, you will not own a thing.

This is a time for a lot of thought and to be very careful. Even if you are totaly in love and so is she. The best of marriages can end in devoirce and you have little protection if it does.

At the very least if you do this, speak to an attorney for yourself and protect yourself, just as you would do anywhere else.

Don't count on fair business practises here, think about it the builder has already took down the rosey path once

[Digger]

Just out of interest, ask the bank (not the developer) how much they valued the property at. It might well be that the bank has given you higher than 70% of what THEY consider it to be worth. Banks also take no account of interior fittings that can be stripped out and sold easily. So if your developer has included things like aircon, kitchens, etc - these hold no value in the banks eyes as odds are these items would be long gone before they foreclose.

Having said that, I am amazed you took the word of the developer selling the property and did not validate any of this information with the company that is actually lending you the money. Its not exactly difficult to go and verify this yourself face to face with the bank.

[bkk_mike]

Just be thankful you got the 70% offer. I got my mortgage back in 2001 (when foreigners couldn't open bank accounts without a work permit - officially), and couldn't even get 20%. (although as my job is abroad, and I don't have a work permit, I should be thankful I got as much as I did maybe...)

As far as the bank is concerned - farangs can, too easily, walk away from the property in Thailand if things go bad here. If only for that reason, they won't put up a big percentage for you...