Hi Mrs Gan
Thanks your question.
To prevent any cash shortfall (or to be safe rather) I would suggest you seek for a preliminary bank loan approval while sourcing for a house. Bank in this case will require some of your personal/income documents for assessment purpose and they will than advise you the loan amount that you will be granted if you select a house, or in short we normally call it In Principal Approval (IPA) from banks. With this you will have a better grasp on the type of house you are sourcing.
Once you confirm a unit you will than require to secure it by paying $1,000, after which 14 days cooling period is granted to you before you pay the $4,000 to exercise the purchase.
There will be 2 hdb appointments in a purchase process. 1st appointment is compulsory to attend while the 2nd is optional.
For bank loan you need a lawyer to act on your behalf in all the necessary documents process/submissions. You will be advised accordingly than on when to pay the 5% cash and COV monies.
Lawyer's office will require you to settle the payment, the 5% cash and COV, two weeks prior to completion of the purchase, meaning two weeks before your 2nd appointment date, eg; if your 2nd appointment falls on 28th March 2011, than you are required to make a payment to them on 14th March 2011.
The purchase process will come to an end during 2nd appointment and you will be collecting the house keys from the previous owners. There will be a letter from hdb to signify that you are now the new owner of the unit. =)
Should I can be of further assistance please feel free to call me.
Regards
Ally Chin
Propnex Realty P/L
Mobile- 811 222 13
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