Approval In Principal

[ambooose 0]

Dear all

I have a query which I hope someone can assist. Much appreciated.

After having been granted an AIP by the bank and having paid the 1% for the OTP,

is there any chance that the bank retract the offer of a loan?

Tks all.

[JustMortgage 0]

  ambooose said:

Dear all

I have a query which I hope someone can assist. Much appreciated.

After having been granted an AIP by the bank and having paid the 1% for the OTP,

is there any chance that the bank retract the offer of a loan?

Tks all.

AIP is only an approval in principal. It does not guarantee that the bank will issue a letter of offer.

In most cases, it will be ok. In circumstances that you have issues with debt or existing loans in which the bank feels that they might not want to extend the lending facility to you.

Have happened before.

[ambooose 0]

  JustMortgage said:

AIP is only an approval in principal. It does not guarantee that the bank will issue a letter of offer.

In most cases, it will be ok. In circumstances that you have issues with debt or existing loans in which the bank feels that they might not want to extend the lending facility to you.

Have happened before.

Thank you for your reply. Regards.

[JustMortgage 0]

  ambooose said:

Thank you for your reply. Regards.

Welcome.

[ambooose 0]

Hi, I've just noticed ***, may I know what are the services I can expect from a mortgage firm?

[dariusfan 0]

They are like independent firms where they provide mortgage services for you, they will help you to source for the best interest rates with a panel of banks they have and help you to apply for AIP... etc They should not be charging you anything, instead they will get commissioned by the banks upon the signing of the letter of offer transaction.

[bepgof 20]

  dariusfan said:

They are like independent firms where they provide mortgage services for you, they will help you to source for the best interest rates with a panel of banks they have and help you to apply for AIP... etc They should not be charging you anything, instead they will get commissioned by the banks upon the signing of the letter of offer transaction.

Worth consider such service especially for first timer apply for mortgage loans which comes with many jargons and structures which layman cannot understand yet such loans have great financial impacts one one's financial planning.

Need to increase such awareness in the mkt, I think. Hope to see more such "promotion & advertisement" in near future.

Edited May 8, 2010 by bepgof

[ignoranceisbliss 0]

  bepgof said:

Worth consider such service especially for first timer apply for mortgage loans which comes with many jargons and structures which layman cannot understand yet such loans have great financial impacts one one's financial planning.

Need to increase such awareness in the mkt, I think. Hope to see more such "promotion & advertisement" in near future.

Banks may change rates and it happens within days. Once you got aip, go and get the official letter of ffer which stands for 2-3 before you sign.

Also, get letter of offer from a few banks to compare. It also helps in your bargaining power wit the rival bank once you have a letter of offer to show. They may offer better rates.

[bepgof 20]

  ambooose said:

Dear all

I have a query which I hope someone can assist. Much appreciated.

After having been granted an AIP by the bank and having paid the 1% for the OTP,

is there any chance that the bank retract the offer of a loan?

Tks all.

I believed the "AIP" is granted by bank's representative sitted around new private properties' lobby after "hearing" the borrow's financial situations, it has quite smiliar in nature to "letter of intent" in business. But all these has no legal bearing on both parties, that is to say - have = don't have.

Much saver way is to get "letter of offer" from finance lenders, but, during the meet-up, need to present essential doc.... to prove your "financial worth", & the "letter of offer" will be issued approximately 7 days after the meet-up after the lender has completed their evaluation of your "financial worth". LOO will last usually 6 months.

If you have time & energy, approach a few lenders & get their LOO and compare and make the decision....

Edited May 9, 2010 by bepgof