Occasionally received a new disk buyer for help, the bank said that it will not accept a new mortgage application
After understanding the incident, the buyer had just purchased an uncompleted property and chose the payment method. He needed to apply for an uncompleted mortgage to the bank to complete the transaction. However, the bank selected by the buyer indicated that it would not build the new building. Mortgage, therefore refused to apply.
Why does the bank refuse to undertake building mortgages? In fact, the above cases are limited to new flats properties of some developers (especially smaller or unapproved developers) due to credit risk considerations. Mortgage originally refers to a bank or lending institution granting a building loan to the borrower. The borrower uses its property as collateral and repayment guarantee. In the event of a confiscation, the bank or the lending institution may sell the property to recover the arrears. Since the property involved in the mortgage of the uncompleted building has not been completed or has not obtained the occupation paper, the bank does not have a statutory industry as a mortgage. Therefore, there is a certain risk for the bank to undertake the mortgage of the building. The Equity Mortgage is only for Equitable Mortgage (EM). The mortgage is not based on a deed of legal charge. After the property is completed and the occupation permit is issued, the Equity Mortgage will need to be converted to Legal Charge.
The large developers in the market are well-funded and have established good building goodwill for many years
There are few problems with poor quality or even “unfinished” property. They have generally become bank-approved developers. Therefore, banks are willing to grant new products. Uncompleted mortgage. However, for some small and medium-sized or new developers, the banks do not have much understanding of them. They may not have enough confidence to build the mortgages for their development properties. Therefore, banks generally need to make assessments before the sale of properties. This includes the developer’s financial background and sales record, property quality, property price level, uncompleted period, market risk and so on. When the property is sold, there will be an opportunity for some banks to refuse to accept the mortgage application for the project.
That is, more discounts for payment
If there are only a few banks that provide mortgages, the buyers should pay attention to the fact that banks may not be willing to undertake a large-scale mortgage of the same building in the consideration of risk diversification. Therefore, the ceiling of the contract may be set. For the limit, the bank may refuse to accept the relevant mortgage application on the grounds of expiration. In fact, the amount does not rule out a decrease as the estimated risk increases. In this case, the buyer may feel at a loss. It is recommended that you can check with the bank or mortgage referral company to find out which bank can accept the mortgage application for the new project.
For the reduction of bank choices, customers can measure this aspect, such as understanding the bank’s approval and mortgage offers. If there are too few bank choices and there is a shortage of bank quotas, the documents required for buyers to prepare for a mortgage application before entering the market include income certificates such as tax bills, bills of last three months and salary records (if unsteady) For those who are in the income, they need a certificate of six months or more and a copy of the ID card, so that they can submit sufficient documents to the bank as soon as possible after the market entry, so that the bank staff can assist in submitting the mortgage application at the first time. In recent months, some buyers of new orders have been forced to return to the relevant mortgage applications by the bank after the mortgage payment was completed.