Apr 2 2009, 09:53 PM
QUOTE(StarJump @ Mar 29 2009, 12:19 AM)
Hey thanks for the advices. Actually there is one more thing I want to ask.
I have signed the 'Letter of Offer' at RM200k. However, I wanted to have a higher loan so that I can cover some of my downpayments. Now economy not so good, so thought of doing this.
The thing is, my agent told me that this is possible but the S&P has to be raised to RM230k so that the bank can loan me around 85%. Now I am quite worried that the S&P is the most important document and the owner can actually force me to pay the whole RM230k since it the binding agreement. The agent told me that I should not be worried because there is the offer letter that states RM200k and there will be another special agreement between seller and Real estate office at RM200k. He told me not to worry, but I thought of having some advice here.
Is there any chance that the S&P shows the exact property price (in my case Rm200k) and the loan can go till RM230k? Thanks.
The 2% that you gave to the agent, they will keep it when the S&P is signed. That portion is due to the seller, but since the seller must pay him 2% commission, then the agent will take this 2% instead so he doesn't have to chase seller for the commission later....safe for him mah if later the seller don't want to pay commission after S&P signed(which has happened before).I have signed the 'Letter of Offer' at RM200k. However, I wanted to have a higher loan so that I can cover some of my downpayments. Now economy not so good, so thought of doing this.
The thing is, my agent told me that this is possible but the S&P has to be raised to RM230k so that the bank can loan me around 85%. Now I am quite worried that the S&P is the most important document and the owner can actually force me to pay the whole RM230k since it the binding agreement. The agent told me that I should not be worried because there is the offer letter that states RM200k and there will be another special agreement between seller and Real estate office at RM200k. He told me not to worry, but I thought of having some advice here.
Is there any chance that the S&P shows the exact property price (in my case Rm200k) and the loan can go till RM230k? Thanks.
If yo want to get a higher loan, then you have to put a higher purchase price. Risk is on you because you want to do exploit loophole. But bear in mind that the bank itself will have to get a valuer to assess the worth of the property itself...if the valuer values it at RM200k max, the bank will still loan you 85% based on RM200k.
Also, if you value at RM230k, then the lawyer will charge you lawyer fees based on RM230k, and plus for any extra private agreement you have between buyer and seller. And you will have to pay stamp duty based on RM230k instead of RM200k to. All this adds up to initial costs, unless you're desperate(which in this case you should not buy this property in the first place). So my advise is just stick with RM200k.
cheers,
minolta
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