Going forward, if you want to make sure that your mortgage is approve you need to do mortgage planning first. Gone are the days when you submit your financial documents and expect the bank to approve your loan.
You have read in the newspaper and magazines that loan approval is getting more difficult and rejections are even more now. Who are we to blame? Shall we blame the bank, bank Negara or ourselves instead? What do you think? Shall we blame ourselves instead.
What will happen when your loan is rejected by a bank? Human nature, you will photocopy all your documents in many sets and send to almost all banks. Then you started to pray that one bank will approve the loan. Is this the right way to do? Do you know every time you send to the banks and when your case is rejected is reflected in central Bank records called Central Credit Reference System (CCRIS) and every bank can view the records?
Let me ask you, you want to leave you approval chance to luck or you determine the approval. With proper mortgage planning you can even turn rejections into approval. It will take some time for the planning to work. Let me give you a good and true example.
Mr Vaja and wife came to see me in my office. When they saw me they already paid the first consultant 1% of the house amount of RM350,000. The loan was rejected and they never get their money back. This happens the second time and they paid RN2,000 for the service. The consultants already knew that the loan will not approved but they still take the money. In total 4 banks rejected and 1 approve at 50%. He came to see me after being referred. I said you no scared of consultant as I am one of this guy also. He still believe that somebody is there to help him. He is buying his first house and his kid coming out soon.
I told him that if he were to apply now with the banks he will surely get rejections. The only way for approval is through mortgage planning. This is what he did but the planning takes one year. If I do it now for him its injustice. He followed my advice and guess what. His loan was subsequently approved by 2 banks.
There are 3 things that you need to do when you apply a loan with the bank. You cannot miss out the following step. It will assist you to take charge of your loan.
1. Check your Credit Tip Of System (CTOS) .
2. Check your Central Credit Reference Information System (CTOS).
3. Check your credit standing now using Debt Service Ratio (DSR). You must learn how to calculate your DSR.
Remember, you must get to know yourselves and the banks well enough to get your loan approve. Nowadays we need to take charge in what we do. We cannot leave it to chance. With mortgage planning, we do take charge of our approval. Whether you are first home buyer or investor, it will be good to start mortgage planning. It can take very fast or it will take some time but it will make sure your loan is approve.