Singapore Home Loan: Protect Your Credit Report
by www.PropertyBUYER.com.sg
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
http://www.propertybuyer.com.sg/contactus.php
In Singapore, getting a home loan or refinancing a home loan can sometimes be tricky. Considering that
there are many banks competing for your attention. Not only that, there are also property agents and others claiming to be
Mortgage specialist. Are they really experts? Sometimes they are, most often, they are NOT.
What happens when you make a bank loan application
Whenever a mortgage broker or a banker lodges your application, the bank’s Credit department will submit an enquiry to the
Credit bureau about you. The Credit Bureau Singapore will lodge a record in your file. The file builds up over the years. This
record is not erased. (See picture below, the number of times an enquiry is made is filed in the credit report)
What are enquiries?
Enquiries are requests by banks and financial institutions which are registered with Credit Bureau Singapore to view your Credit
Report. Each time such a request is made by any parties, the Credit Bureau logs such request into your credit report. You can take
a look at a sample report at –> http://www.propertybuyer.com.sg/viewnews.php?article=102
What do banks think about multiple consecutive enquiries?
We cannot say definitively what banks think as these are confidential. Each bank have their in-house risk management team to
assess the risk of lending to an individual. For example, if a person has defaulted on his/her loan before, and this is followed by
many enquiries by banks, the subsequent bank’s suspicions may be raised about the person.
Even if the person may not have defaulted before, many attempts to obtain home loan results in many enquiries showing up on
your credit report.
Are Credit “Enquiries” necessarily Bad?
Credit enquiries are neutral in nature. For example, if a person is very high net worth and he/she engages in buying and selling of
properties all the time and engages in many financial transactions, then it is normal that there are many enquiries on his/her
credit report.
However excessive credit enquiries on a single individual by banks or financial institutions can also be an indication of
distress or recognised as such by some lenders. Excessive “Enquiries” coupled by a past history of one single default (even in the
distant past), may just be enough to discourage lenders to lend you.
Will it impact my chances of getting a bank Home Loan approved?
If the enquiries are consecutive, the property Buyer or home loan borrower may jeopardize their subsequent chances of obtaining
a loan with another bank. We certainly think that excessive enquiries can impact the chances of a home loan being approved.
Especially so when the global economic climate is negative.
Each enquiry made is being logged in the credit report. And it cannot be erased.
We are a research-focused Mortgage advisory, we do not emphasize cheap loans, but rather what best fits your financial situation to balance risk-versus-savings.
HOW Does www.PropertyBuyer.com.sg minimize the “enquiries” being lodged to a person’s Credit Report?
We work closely with the banks. After obtaining your financial information, we cross check with the banks on your likely success rates before we submit your completed bank loan application form to the banks.
This way, your Credit report will not have too many enquiries being logged and you will therefore likely have a better credit rating.
Then we will sort out which banks offer you the best home loan features or structure that gives you that financial flexibility and protection.
Our approach of NOT emphasizing cheap loans has cost us dearly in terms of revenues as we do NOT push our clients into cheap loans to close a deal.
We turn away clients too. Many times when we felt that the valuation is unjustified for a property, we will also inform our client and advise them of the possible risks. Thankfully, our “lost clients” have been very generous in their referrals of their friends
and family to us. This has helped us maintain our operations.
In order to maintain a truly independent and professional service, we have had to give up peddling “Cheap loans” and “being Pushy” to close deals against the interest of our clients.
We need your help: -
If you feel that you have truly benefited from our articles or service, we kindly
request that you bookmark us in your “facebook” or refer your friends and
family to us for your Home Loan needs.
CONTACT US
Tel: 6100 - 0608 sms: 9782 - 8606
Email: loans@propertyBUYER.com.sg
http://www.propertybuyer.com.sg/contactus.php
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This post was submitted by Singapore Mortgage.