Bank Letter Offer only valid for one to two months. For two ( or three ) months onwards, the banker need to reinstate the letter offer validity by seeking Credit Approval. Means it might be rejected and you need to resubmit a whole updated income doc in order for banks.
Ex. Your submit the loan application at Jan and only aproved now, means LO date March 2012. If after 1 1/2 months, say May, you wanted to sign the LO. Banker need to reinstate the LO. Most banks should be no problem. But there is one risk where banks would requested a new application due to Income Doc provided was during January which was 4-5 months back, then the Credit Approval would not agree to extend the LO. Hence, pls resubmit new application.
While, some banks do have pre-approve loan, Alliance Bank has and UOB no. They can do a pre approve loan without booking receipt or certain property details. But to get approval first and then wait S&P signing time only to release LO, is no such things. Unless the S&P signing is within 2 weeks short period. The banker can hold the LO issuance and trying to KIV by amendment some package or etc and then re seek for approval without changes.
Hope it's clarifies you all.
Added on March 9, 2012, 12:16 amTo finalize a S&P is just very quick. They unable to do so bcz they are yet to obtain the AP & DL and also they just finalize their agreement of DIBS package with several banks like Alliance Bank, UOB and Ambank.
And yes, Alliance Bank just finalise their loan package but they waiting the developer to pen to the LO but they had verbally agreed to it. You can starts to apply soon.
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Thanks for your informative reply and believe many of us here able to grasp some valuable info. I think my decision is the right one to wait for later only apply for loan since do not want to submit my docs twice once the LO expired. Probably after March I'll see how it goes and furthermore March is end of fiscal year whereby some salary increment will justify to get higher rating for loan approval