Try to get fixed mortgage even if 1% higher than flexible rate.
For example, fixed at 2% and flexible at 1%. Why?
If interest rates double under flexible rate to say 2%, your monthly payments double.
This is the bit I can’t get my head around, in the UK we can get the mortgage in principal, so you know what you’re looking at before you agree to the house, then work it from there last thing you do is sign.
Here you have to sign for the house first then try to sort out your mortgage, what happens if you end up with a shit mortgage because that’s all you can get on that property?
Or you can’t finalise the mortgage and you have to pull out, is there a fee?
Or you get the surveyors report back from the property and its in a bad way?
Yea. This is the way we do it across the commonwealth, the US and other former colonies. I agree. It’s backwards.
You lose your $100000 promissory payment. Already got burned signing into a different house by a pushy real estate agent that wasn’t upfront about what we were doing and lost $20000 because she had not prepared any good deals with the banks. She wouldnt give me time to get more banks. Had to get the lawyer to threaten her. I cancelled and used the time to try to squeeze a better bank deal. Her pushiness often meant I had to make decisions on a split second and I need to call fam cause they are helping me with some of the down payment.
I spent two weeks squeezing a better deal from the banks. But they ripped it from under my feet on a Sunday night when i was out with friends despite promising to wait one day so i can call my fam. I am still salty.
You can talk to banks first and give them all your info and weed out the ones that dont accept foreigners. Rules change branch to branch so don’t give up. They will determine what they think its worth and give a ballpark figure but not commit to a preapproval which really sucks cause the risk is on you. You can’t get preapproved but you can get an estimate. When you apply then the bank will make an even more extensive search of the house and stuff.
If anyone wants to buy a house, I recommend not proceeding until ‘Dependent on bank success’ is written on the contract and be persistent. This does come with the caveat that some non-career-agents, those who just wanna get into it for a couple years, make some money and move on will dump you for ‘easier’ clients. Don’t give up and be prepared to dig your heels in that bank success is a non negotiable! You are a foreigner and you know how we are treated. You also need to press the agent hard to help you with the banks too. Don’t be too honest. Don’t give banks a reason to question you. Treat them like border officers. Sometimes corrupt answers work better.
Why are you self employed with your own company?
To save and avoid taxes.
And Guanxi helps! Get your friends involved and ASK ANYONE YOU KNOW for help.
Thanks for the reply, i have been sort of half looking into it to get something in my name not just in the family names like the other properties.
I got to the parts where i had to sign then find a mortgage and sort of give up, because i didn’t like the idea of being committed to something and then end up getting stiffed.
I have an associate who is a bank manager he is quite an ok guy, but it feels wrong asking to help. also i don’t like the idea of someone within my circle knowing all my financial details as i just know they love a good chat.