All Posts by Jimmy

Top 5 Craziest Encounters by Property Agents

Hahahahahaha! No. 2 reminds me of the Red Room of Pain from ‘Fifty Shades of Grey’.

wealth conference 2016

wealth conference 2016

5. Splashing Surprise!

In a recent awkward situation, a property agent explained how she decided to make sure the house which was up for viewing that day would be spotless so it would be presentable for the probable buyers. It was definitely astonishing to hear noises in the backyard especially knowing that the owner was away on a holiday. So imagine spotting strangers sun-bathing and wading in the pool! Well, little did she know that these unknown young adults had been making this pool their weekly entertainment hideout!

pool

4. Doll Obsession!

Now, collecting dolls can be cute and sweet but think about this – how creepy is it going into a room surrounded by dolls from the moment you open the door and having all those eyes staring at you?! A property agent shares that she got the fright of her life when she was viewing a house to be put on rent. Upon viewing one of the rooms, she claimed that the whole room was filled with an atmosphere where it was literally like ‘Chucky and Friends 101’ (from Child’s Play, the movie). The funny part was when the owner refused to get rid of the dolls, instead choosing to keep them as colossal pieces for the tenant.  Bizarre and weird to a whole new level!

doll

3. Animal Craze 101

It definitely goes without saying that we love our pets beyond boundaries, but I believe a line should be drawn somewhere, and at some point! Picture walking into a house filled with THIRTY TWO furry four legged friends roaming around the entire house. This for sure is the weirdest kind of madness a realtor had to deal with at a house around Selangor, just because the owner disregards caging these cats. What made it even worse was the fact that the future tenants of the house was with her watching this atrocious cat-tuation going on.

cat

2. Nude Charm

Art is a form of expression, no doubt about that. But the expressions through art can be quite outrageous. Showing a house in KL to prospective buyers while coming across naked pictures of the house owner was certainly a disturbing experience for a young realtor. According to him, he was not aware of this strange room as the owner had “misplaced” the key when the introduction tour of the house was given before it was put up for sale.

girl

1. Hoarding at its BEST!

Hoarding! A verb which is alien to some, especially those with Obsessive Compulsive Disorder (OCD). This situation could be a winner for “Most Shocking Experience A Property Agent Ever Had to Deal With”. Many property agents look forward to getting an easy sale when a friend asks them to assist them in buying, selling or renting property. But do you really know your friend?!

A property agent relates that a house owner around Subang Jaya wanted to give his house up for rent. But things got fishy when the owner refused to allow the agent in to show him the inside of the house, and was extremely insistent that the property agent was only allowed to check the house after the owner had left. Alas, the property agent who agreed to the condition of the owner later understood the reason behind the owner’s bizarre request when he stepped into the house a few days later. He literally found himself in a house filled with rubbish and boxes. The abashed owner subsequently apologised for his behaviour and trash filled house, explaining that it had been left vacant for a very long time.

rubbish

Source: PropSocial

Encountered owners of properties wanted to sell their properties but refused to provide exact addresses of the properties until I have buyers.

For more information about Property Investment, please visit 👉 Property Millionaire Intensive

Things You Look For When Applying For A Housing Loan

Things to Look For When Applying A Housing Loan – A good banker!

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Which banks offer the best rates?

 

“Which banks offer the best housing loan rates?” is often the first question that comes to mind.  However, there is no absolute answer for this question because interest rates vary with numerous factors such as the  loan amount, loan tenure, credit history (LoanStreet) and so on. Is it true to say that the lower the interest rate, the lower your payment?. Generally, yes. Nevertheless, solely looking at the interest rate alone may lead you to making a sub optimal decision. Be reminded that you should also pay attention to the terms & conditions (T&C) on paper because they affect your loan installment amount as much as the interest rate does. For example, imagine that the T&C states that the loan is bundled with 5 years lock in period (early termination) and 5% penalty fee. It means that without paying a 5% penalty based on your outstanding balance, you cannot pay off the outstanding balance or refinance the loan within the first 5 years. 

The statement above is not meant to undermine the importance of interest rates in a loan agreement. Interest rates do play a crucial role in your monthly installment and the compounding effect scales up your total payment. In other words, even a slight interest rate difference in your monthly installment will eventually accumulate to a huge amount of money paid additionally when you look back at the end of the loan tenure. 

Which bank provides full flexi loan service?

Some people may not be aware of the effect of flexi, semi-flexi and non-flexi loan option when comparing housing loans. Essentially, a flexi option allows you to put withdrawable additional money in your loan account. A full flexi loan allows you to withdraw without incurring any charges whilst a semi flexi loan charges you when withdrawing money from the account.  Read Loanstreet’s article about full flexi vs. non flexi property loan (LoanStreet) to find out more about the different options.

In this respect, we recommend you to go for full flexi loan if you have additional money to make advance payment in order to reduce your outstanding balance. Furthermore, the cash balance in the account will be excluded from the outstanding balance during interest calculation. This gives you more flexibility and just imagine how much you can save by paying less interest! Nonetheless, you might have different needs and there is nothing wrong with applying for a non-flexi loan because the interest rate could be lower still.

For those who are interested in applying for full flexi loan, you can refer to the table below to kick start your selection process.

chart

Which loan package has the shortest lock in period?

Lock in period is another factor that you should consider. As the name implies, the lock in period is the time range when penalty fees are imposed if you intend to pay off the loan early. The penalty fees also applies to any changes in T&C of the contract as well as cancellation and conversion of the loan agreement. In general, penalty fees ranges from 2% to 5% of the outstanding loan balance. Should the loan packages in comparison consist of lock in period, it is always wiser to choose the shortest lock in period with low penalty. However, some banks do not charge a penalty if advance notice is given. Moreover, for loan packages with zero lock in period, it might have higher interest rate as compared with loan packages with lock in period. You can check our home loan comparison(LoanStreet) tool to see the different lock in periods offered by different banks.   

Which bank approves loan application in the shortest period of time? 

It is very difficult to determine which bank has the shortest approval time because banks have different procedures and different requirements for applications. On an average, it takes them about one to two weeks to approve the loan if complete documents are submitted. To prevent any delay of approval time, prepare yourself a checklist of the documents required by the banks.

Source: PropSocial

Other considerations – MRTA requirement, free lawyer fees loan agreement, ease of application, good customer service of the bank staff…

For more information about Property Investment, please visit 👉 Property Millionaire Intensive

How to Ensure Good Tenants for Your Property

A good tenant will save you a lot of time.

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wealth conference 2016

Choosing the right tenants

Choosing the right and the most appropriate tenants is very important. As part of your vetting process, you must also make sure that you always contact the previous landlord of your prospective tenant. You should ask them whether their tenants were good with the property and if they would be able to allow them again.

Cleaning instructions

In case you are in possession of any items that require some careful cleaning, you can supply this information to your prospective or future tenant. You can also write down all the instructions for cleaning on a laminated document so that you have to do this only once.

Remove all your valuables and personal items

This means that you must take out all the items that have sentimental and financial value. You can also replace them with some cheaper alternatives.

A large deposit

A large deposit can be very helpful in making sure that your tenant takes proper care of your property. You must at least take six weeks’ worth of rent as deposit and also make it clear to the client that if any damage is done on the property, the equivalent amount will be deducted from the deposit amount. This will easily ensure that the tenant takes good care of your property as if it is his property.

Befriend the neighbors

It is important to befriend the neighbors as they can be all eyes and ears when it comes to overseeing your tenants when you are not around. You can also give them all the instructions and ask them to be highly vigilant when it comes to spying on your tenants. This is a very naughty step but a very effective step as well. It is one of the important things to remember.

Regular inspections

Regular inspections must also be carried out for ensuring that your property is in good hands. For example you can visit your property once every three months and do an inspection. This will help you in the long run as it can increase your trustworthiness on the tenant which can have many long term implications.

Article Source: EzineArticles.com

For more information about Property Tips, please visit 👉 Property Millionaire Intensive

 

What Are The Crucial Factors Influencing The Mortgage Rates

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wealth conference 2016

Mortgage rates are totally dependent on how the economy is performing. The mortgage rate comes in different varieties and the most popular is fixed rate loan. In case of the fixed rate, there is no fear of the rate fluctuating. If you are planning to take the mortgage loan, you need to enquire about the mortgage rate. The loan is actually used by the purchasers of property to raise the funds and to buy the real estate property. Mortage rate is generally influenced by the target cash or the official interest rate which is set by the Reserve Bank. The moment Reserve Bank changes the official rate, it tends to influence the overall expenditure of the economy. In fact, when expenditure is more than the production, there is inflation. How the rate is determined and how the rate moves is an absolute mystery.

When to Look Up For Fixed Mortgage Rate?

If you intend to hold your home for a long time, it would be great to opt for the fixed mortgage rate. The one who goes in for 7/1 ARM, they can get the rate locked for 7 years and there is nothing to worry about the fluctuation. The rates are quoted in the 1/8% like 4.125%. It is usually the 4.4258% which is the APR or the Annual Percentage Rate.

The Fluctuation of the Mortgage Rates

There are too many factors influencing the fluctuation of the rates. The 10 year Treasury Bond Yield is the finest indicator. Here the 20-30 years fixed rate mortgage is paid within the tenure of 10 years or so. The payment is done by selling the home. The Treasuries are in fact backed by the credit and full faith of the US. Treasuries act as the bench mark for the other kinds of bonds. So, when the rate of the T-Bond or the Treasury bond goes up, the mortgage rates also go up. Besides this, there are several reports on the fluctuation of the mortgage rates.

Other Important Factors Influencing the Mortgage Rate

Mortgage rate is also affected by various other factors. They include the GDP or the Gross Domestic Product, the Consumer Price Index and Consumer Confidence, the Home Sales. If the economic news is good, the rates will go up and vice versa. If the stock market rises up, the rate of mortgage will skyrocket. The fluctuation in the rate is also dependent on the Federal Reserve which tends to adjust the Federal Funds Rate. The rates are sure to rise under inflationary economy.

How to Protect Oneself from the Rising Mortgage Rate?

A lot many people are worried about the fluctuating mortgage rates. When the mortgage loan is processed, the broker will tend to lock the rate to protect you from the rising mortgage rates. With most of the lenders, these locks may go between 15 and 45 days.

The interest rate on the loan gets adjusted and is influenced by various factors. Never be swayed away by the par value. If one is doing the LTV or high loan to value rate and the credit score is sound, there will be adjustments on the rate.

Source: www.artipot.com

For more information about Property Tips, please visit 👉 Property Millionaire Intensive

 

Variable Rate or Fixed Rate, Which One is Right for me

 

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A variable interest rate home loan is a loan where the interest can change from one month to another. In a stable economic environment these changes should be quite moderate but you always run the risk of increases in interest rates and these can increase significantly over the life of your loan. On a positive note rates also can go down and in this instance you do get the benefit.

A fixed rate home loan on the other hand is a loan where your interest rate is fixed for a certain period of time and during this period, your interest will not change no matter how rates move in the market or what changes the Reserve Bank apply.
Both loan options have their advantages but which one will work for you is mainly dependent on your situation.

Fixed rate home loans have the advantage of minimizing your risk and avoiding any unexpected rate increases. The downside is that you won’t get the benefit of any further rate reductions. Fixed rate home loans also make it more difficult to switch lender as they can have high break costs

What do you gain by fixing your home loan?

Interest rate rises don’t matter. If the RBA chooses to increase their cash rate it makes no difference, if the banks increase there interest rates it makes no difference – you know how much you need to pay every single month.

Makes it easier to budget. With predictable monthly repayments, a fixed rate home loan makes it easier for you to budget your income. Whereas the variable rate option keeps you on your toes as you are unsure whether the rates will rise or drop which might impact negatively on your finances.

What benefits come with choosing a variable rate home loan?

A drop in interest rates is always welcomed. If rates fall you pay less and when the economy is not performing as well as the it should rates often go down.
Make extra payments. One of the main advantages of the variable rate loan that sets them apart from their fixed rate counterpart is the ability to make extra repayments at no cost. This feature enables you to clear your loan in a shorter period of time in case you run into unplanned cash.

With interest rates at an all time low, no Australian can accurately predict how home loan interest rates will move. If you enjoy the flexibility of making free extra repayments in the shorter term then a variable rate home loan is good for you but if you are happy paying the amount on a fixed rate loan and you don’t need this kind of flexibility, a fixed rate loan is a reasonable option for you.

Source: www.artipot.com

For more information about Property Tips, please visit 👉 Property Millionaire Intensive

 

Positive Traits to Look Out For in a Real Estate Agent

Sit back and let the thought settle in for a while. What do you really need?

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wealth conference 2016

knowledge

KNOWLEDGE

In a perfect world we would expect all our agents to be reasonably competent at doing their jobs. Knowledge of the property market such as current going price psf, latest transactions and general performances of JMB/security of said property is important in this line, and your agent should be able to answer simple technical questions associated with the job such as: 

– How much stamping fees are we expecting to pay for this rental case? 
– What is the usual working timeframe we are looking at for the deal to go through till I get my disbursement from the bank?
– What is the difference between Schedule G versus Schedule H?

Their answers tell a lot about their knowledge, preparation, professionalism, experience and ultimately, their competency at serving your real estate needs.

cerdibility

CREDIBILITY

A good agent need not look or market himself very much, a Credible agent will be sought after by word of mouth and recommendation. How do you test this trait in your agent? Randomly ask them to elaborate on something they’ve mentioned, and watch how long the elaboration goes. In most cases, you will find two types – the storyteller whose story never ends, and a storyteller whose story starts to dry up after a few sentences. 

Question: “ Is dengue a cause of concern in this condominium?”

Answer 1: “Actually if you’ve walked in through the front gate you might have noticed this big awareness banner stating 36 reported cases over past 2 years. Yes, it is. The management understands the severity of this and has gotten those mosquito sprayer guys with fogging machines to fog the place every fortnight, besides getting the weeds at those edges trimmed regularly. Part of the cause is said to be the monsoon drain running beside the condominium which tends to stagnate during dry seasons, and MBPJ is working on proposals to build a covered landscape over it to tackle the issue.”

Answer 2: “Got-lah I heard, a few here and there. Normal for Malaysia weather, no surprises-lah, what you expect?”

You choose.

integrity word in vintage, metal letterpress printing blocks on scratched wooden background

INTEGRITY

In this industry, real estate agents are often directly involved with the movement of money. Agents are entrusted to handle the flow of money in every transaction, and are then paid for their services in cash too. The scope of work and boundaries of ethics gets blurry in reality when one realizes the amount of referral incentives being thrown all around as lawyers, bankers and other agents compete for clients too. There will be times when moral grounds are put into question, like when an agent has to decide between recommending a very suitable unit which pays one month’s commission, or a less suitable unit with a one and a half month’s commission. It boils down to the agent’s integrity of balancing between servicing their clients or serving themselves. 

How do you test integrity?

The only way is to entrust them with jobs of proportionate trust level, moving forward to something bigger one step at a time. 

“Here’s RM5, kindly bank in to this account.” And check. Repeat with RM50, RM500 and RM5,000.

No, this is not recommended. But if you insist (and have the cash to spare), you could always try.

responsiveness

RESPONSIVENESS

A good agent is a person who replies promptly, tries to reply promptly, or at the very least replies promptly to inform you than they can’t reply promptly (if that makes any sense). A client with a responsive agent will have much more peace of mind in knowing that the person they have engaged is always ready and waiting for them, not vice versa.

Having to chase your agent all the time when you are at a crucial time of your deal is not fun, and you will eventually get the impression that the agent is only around when there’s money to be earned and will disappear as soon as he collects his commission.

There was a story of a property agent who lured a newbie investor into buying five houses at once while telling him to just sign everything, and disappeared the moment he collected his commission. When the newbie investor ran into issues and attempted to call his agent back, the agent never picked up the buyer’s call again.

How do you test their responsiveness? WhatsApp them questions and see how fast they respond, and how they respond. Is it an “I’m sorry I’m in a client meeting now, I’ll get back to you as soon as I can,” a few minutes after you send the message, or do you only get a nonchalant reply a few hours later? And how do they behave when you ask them 101 questions? Hurriedly or patiently?

communication

COMMUNICATION

Communication in this context refers to the interpersonal communication ability of understanding your needs, concerns and priorities, then being able to communicate it across to other parties (buyers, sellers, tenants, lawyers, bankers, government departments, etc.) in a concise manner without distorting the original message. 

Real estate transactions often involve many individuals working around the clock, as such a miscommunication might cost days to which deals may be concluded or lost. In addition, having a strong grip in multiple languages is an added bonus which makes processes a whole lot smoother.

How do you test the strength of communication? Well, you communicate!

The All-Covering Question

A good way to gauge your agent is to ask very casually their opinion on something that you are very well versed with. It can be about the market price of the said property, expected rental or even on the latest governmental real estate policies. Maybe even ask them why did they choose this profession?

The idea isn’t about expecting the right answer all the time – nobody knows everything after all – but, to watch how they carry themselves when they can’t answer. Do they make up stories, do they admit they don’t know, or do half of both? Do they charm/distract you away from your question? Do they promise to get back to you later with an answer, and actually get back to you? 

You will be able to understand the person better with this, and it may set the foundations for a healthy client-agent relationship.

Source: PropSocial

Their answers tell a lot about their knowledge, preparation, professionalism, experience and ultimately, their competency at serving your real estate needs.

For more information about Property Investment, please visit 👉 Property Intensive Seminar

Inexpensive Ways to Drive Up the Value of Your Home

Always treat the house like a home, and give it an extra 10% of Tender Lovin Care. It may not seem obvious, but a genuine TLC shows in value.

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wealth conference 2016

1) Start gardening

Simply planting seedlings and flowers bushes from small pots can be both low-cost and highly rewarding. With the rights plants, you can turn a basic-looking garden into a stylish oasis.  If you are really diligent and have a few more dimes to spare, you can even plant a tree and invest in simple landscaping. Potential buyers will be impressed with the upgraded look and feel an attractive garden provides. 

Apart from a better ambience, if your plants are formidable enough to provide shade or lower the temperature, you may also be reducing energy costs by helping to naturally temperate your home.

gardening

2) Hyper-vigilance

Keep an eye on every little leak, why? Because tiny trickles turn into an ocean of trouble. Regularly maintain little fixings in your home and save big money in the future. Remember that water damage can ruthlessly destroy walls, tiles and roofing, as well as cause rusting and foundation erosion. If left alone it will undoubtedly drag down your home’s potential value.

For extra help on damage that you may not be able to see, it does not cost a lot to have someone inspect your home every two to three years for potential problem areas. If financially able, be sure to fix any concerns ASAP; the longer you wait, the more it will cost.

hype

3) Clean white paint

A fresh coat of paint does not cost a lot, yet it instantly refreshes the look of your home. White paint will do the job and is easier to sustain than fancy colours. What’s more, the colour has a clean, crisp effect that buyers love and classic white never goes out of fashion.

How often do you need to paint your home? Every two years is optimum (or just before a showing), not necessarily the whole house just the spots prone to dirt and discoloration, and this usually excludes bedrooms. Where you’ll need to pay the most attention: external parts of your home like outside walls and other weather-beaten spots.

painting

4) The set-up

Homes that are ready for viewing must look tip-top and if you are still living in the home at the time, be sure to keep it ultra clean. Some go so far as to ‘set up’ the home when having potential buyers over. This means, bringing out the fancy table cloths, draping your windows and using warm lighting to showcase your home’s potential. 

Do this for agents as well, (if you’ve appointed any) as they are the first line that needs to be sold on the true value of your home, otherwise known as your asking price. It’ll be easier for agents to convince buyers to meet your price, if they agree with your point of view.

Modern Cozy Living Room

Modern Cozy Living Room

5) Updating energy suckers

Adding value to your home can also come in the form of money- saving fixtures for your potential buyer. How do you do that? By maximizing on energy efficiency. Electricity costs are a major expense, especially visible if calculated annually.  For those using air-conditioners (moderately) in the home, you fork out an estimated RM250 per month or RM3,000 per year for this bill. 

A simple update of the fittings in your home from time to time will make a noticeable difference, but you don’t need to do it all at once. For instance, periodically change your lighting fixtures and bulbs to energy-efficient LEDs. You can also employ cost-efficient tints to glass windows in your home to maintain and deflect heat so you won’t have to use your air-conditioner as much.

energy sucker

6) Size matters

Numbers like 18 by 55 and 22 by 65 are just that, numbers. Buyers can’t feel the numeric you are selling until walking into the space and experiencing it for themselves. So it’s very important to let your home FEEL big and spacious even if it actually is not.  You can certainly “expand” the size with just a few minor adjustments, try this:

🚨 Reduce clutter (if any) to instantly increase the size of any room. The sight of little knick knacks sprawled everywhere creates an image of a less spacious, closed-up environment.  Do store your little treasures in closable cupboards and organizers so it’ll appear as though you have wide, open spaces.

🚨 You can use mirrors to double the area of smaller rooms as the reflection gives an illusion of more space.

🚨 Use natural light to enhance the width of a room and at the same time, deliberately leave some spaces empty for a look of expanse.

size

Source: PropSocial

Additional interior tips:
🚨 Something shiny will look nice and expensive eg. polished tiles on the flooring
🚨 Indirect lighting, will make the place look more exclusive.

For more information about Property Investment, please visit 👉 Property Intensive Seminar

Government Housing Programs You Should Know About

Whether you are a first-time buyer, loan-reject, newlywed, or low to medium-income earner, there seems to be a fitting housing program with you in mind.

wealth conference 2016

wealth conference 2016

Government Housing Loan Scheme

Working for the government brings you many benefits, and this is one of them. These loans come with attractive interest rates, special subsidies and are much easier to get approved. While it is not technically a housing scheme per se, the interest savings along with other assistance makes it more affordable to own your home as compared with traditional bank loans.

The loan amount is dependent on the workers’ pay scale and can be considered rather decent. It ranges between RM120,000 and RM600,000, with the latter still making it possible to purchase a ‘nice house’ in the Selangor city area. 

DO CONSIDER:
🏡 Repayments deducted from salaries – Make certain that in addition to servicing this loan, you still have enough left over to maintain household expenditure and as well make payments toward your other commitments.

🏡 Employment status – Plan out your employment tenure as government loan approvals require you to serve for a minimum of one year and be a permanent confirmed employee with at least a year remaining before retirement or end of service.

myhome

MyHome Scheme

If you can only afford homes within the selling price of RM80,000 and RM250,000 (depending on location), then you may benefit from the MyHome Scheme which is under the supervision of the Ministry of Urban Wellbeing, Housing and Local Government. The program is aimed at first-time aspiring homeowners who fall under the category of low to middle-income earners.

How it works is similar to PR1MA, whereby approved applications will still need to go through a balloting process. The program helps reduce the purchase price of low to medium-cost homes by offering a subsidy of up to RM30,000 to aid buyers and at the same time provide an incentive for developers to build.

DO CONSIDER:
🏡 First Come First Serve – Interested buyers should apply as soon as possible, but note that even though you are a qualified buyer, your application will still require review from the ministry before selection through balloting.

🏡 Resale moratorium and owner-occupancy – As with PR1MA, the property may not be sold for 10 years and is meant to be owner-occupied. 

The Downside to Government Programs

The truth is that although these schemes are much-needed and thoroughly appreciated to the cause of home ownership, not every deserving applicant will benefit from the opportunity.

In addition, most of these programs are accompanied by a special set of stipulations and could vary from state to state. It will no doubt be disheartening to those with rejected applications as these assistance programs truly do come with a lot of promise. 

But still, don’t be put-off by the possibility of rejection; instead arm yourself with as much information as possible to ensure your application is solid. Also, keep in mind that some of these initiatives are still having the kinks ironed out and are in pilot phase – so you will need to stay updated from time to time for any change in details that could affect your situation.  

Source: PropSocial

Good read!

For more information about Property Tips, please visit 👉 Property Millionaire Intensive

The most important aspects to consider while selling a property

Buying or selling a property requires a lot of planning and the thoughtful execution. You may find the requirement of hiring a broker to help you in this respect, but that may incur a lot of cost. So it is important for everyone to know few things before you go all out to sell your property to the potential buyers.

Herein below are some of the most important points to consider in this regard:

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Choose a Realtor for your property:

When you actually find it difficult to handle all the works related to getting your property ready for selling, you may take help from a reputed Realtor. These people are constantly pursuing educational opportunities, attending conferences, as well as taking part in local community groups and events just to become a more seasoned real estate professional.

So you can just turn to these people with full reliability when deciding to purchase or sell your next property.

project approved

Consider the Loans and liability factors:

In present days people around the world are going through huge financial uncertainties and are witnessing several issues related to property management. This is a common thought that selling a property with a liability or loan is quite complicated and problematic, but in actuality, if all the documentation and paperwork are ready in an exact way, it can be very easy. So it is important to consider all facets related to the loans and liabilities of your property, you may also hire an expert for advice on the same.

loan rejected

Keep all your documents in order and ready:

Preparing your property for the sale is not only the thing that needs attention, it is also vital to be prepared yourself for inquiries that might arise regarding the property and also be prepared to present the necessary documentation that your listing agent, attorney or potential buyers may request for.

Make sure you have all relevant documents like the copies of rental agreements, deeds, mortgage satisfaction letter, utility bills, tax bills and other such papers ready for showing up as and when required. Also, do not forget to speak to your accountant about the sale of your home with regard to any kind of tax issues.

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Look after the Taxation and related issues:

You may have planned to buy and sale property like a residential or commercial one, now this would require you to give attention to the taxation aspects. The taxation is based generally on the timing in which the property is sold. So you must be careful while considering this particular pointHealth Fitness Articles, you may also call for help from a good legal expert for advising you on it.

Source: Free Articles from ArticlesFactory.com

For more information about Property Tips, please visit 👉 Property Millionaire Intensive

 

Applying For a Bank Loan

If you are applying for something like a signature loan, mortgage loan or business loan you may be applying directly with the bank or through online applications.

moeny

Talk with A Professional

Make an appointment with a loan officer at your bank. Sit down with them and discuss the type of loan you are seeking, what your goals are and a bit about your financial situation. The loan officer may be able to give you guidance and offer options you had not considered. You may be able to get a realistic estimate of the chances your loan will be approved.

regular

Provide Your Information

One of the first things you will be asked to do is fill out a credit application. The application is the banks method of gathering demographic, income and credit history information about your.

Be prepared to give information such as:

🎖 Name
🎖 Address and Phone Number
🎖 Date of Birth and Social Security Number
🎖 Employment Information such as name of employer and length of employment

There may be other questions depending on the institution’s internal policy and the type of loan.

The Bank Analyzes Your Information

Using your applications a baseline the bank proceeds to investigate and determine how much of a risk would be involved in loaning to you. Their procedures may look something like this:

🎖 With your name, date of birth, address, and social security number a credit report and/or credit score is requested from the credit bureau(s).

🎖 The bank reviews the credit report to see how long you have had credit. If you have no prior credit it is difficult for a bank to assess the level of risk in loaning to you so it may be denied. The longer the length of credit the more ability the bank has to see how you have handled repayment of credit over time.

🎖 Your credit score is based on a formula that meshes’ lots of data about you and creates a number that immediately tells the bank how much of a risk you are. Know your credit score.

🎖 The credit report lists ‘inquires’ from companies you have applied for credit with. Lots of inquires are a bad indication, as it appears you are constantly shopping for credit.

🎖 If your credit report shows slow payments, late payments, unpaid collection items and so forth you will be considered a very high risk.

🎖 Your length of time on the job is a consideration because the bank wants to feel you have a reliable source of income to pay debts with.

🎖 The bank will look at your ‘debt-to-income ratio’. They want to know what percent of your income is already committed to paying debt. This is a good indication of whether you can afford the loan. Know your on debt-to-income ratio.

🎖 How long have you lived at your place of residence? The bank wants to know if you are fairly stable or do you move around a lot.

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The bank completes its assessment and takes one of the following actions.

🎖 Notifies you that the loan has been approved. In this situation you will be required to sign certain loan documents that set forth all terms and conditions of the loan. You will then receive the loan proceeds (money) or the asset obtained with the loan.

🎖 Notifies you that the loan request will be taken to the next loan committee meeting. The ‘loan committee’ is usually made up of bank officers who meet periodically to hear presentation of loan requests that are either marginal, must go before the committee due to the size of the loan, the loan amount exceeds the loan officers cap for approval, or various other reasons. The committee hears the loan requests and votes to approve or deny.

🎖 Notifies you that the loan request has been denied. In this case you should receive a document called a Notice of Adverse Action that will provide further information about the denial.

Do your homework before applying for a loan. You should be able to get a fairly accurate idea of whether you will qualify or not.

Article Source: EzineArticles.com

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Apply bank loan are not easy task, it take time to complete it.