Ask Dr Mortgage. Why the bank pushing me to sign approval letter?



I apply loan n get 90% from bank. May I know why the bank only give 3 days for consider if not the loan will be cancel? According to the officer my first application was rejected due to me do not have CCRIS. Because I do not have credit card n car installment. They appeal n now I got 90%. I got another bank offer for 80%, I still the 3rd bank’s answer.

Normally the bank will give 14days for you to sign offer letter before it lapse . You can be facing the following situation:-

  1. The banker are worried that you sign with other banks. He will lose your business.
  2. The banker have monthly target to achieve.
  3. If you are buying a new project and the end financing about to finish you need to sign quickly.

As a banker myself, we have to go through a lot of processes before the loan is approved. Your loan was rejected before as there is no track record and the banker did an appeal. Yes, to safeguard ourselves we applied to many banks. For the bankers, the more you applied the loan with other banks the less chance he/she have to close your case after spending a lot of time for approval. That’s why they push you to sign soonest possible. Some bankers will not even give you the letter of offer as they are worried that you will use it to apply with other banks.

As we may feel that is not right to do, if we think from their perspective they are only earning a living with their monthly income and commission.

From the Desk of

Miichael Yeoh

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