Singapore Mortgage Loan Processing Checklist

Singapore Mortgage Loan Processing Checklist

When you’re seeking a mortgage, a list of documentation is required by mortgage brokers. This checklist of mortgage processing documentation assures that all of the lender’s conditions for the loan are fulfilled.

Mortgage processing is the term for all the actions taken by the loan specialist to complete the borrower’s mortgage. A checklist for all the items required by a mortgage lender helps to keep both the loan processor and the borrower organized, and moves the mortgage process faster.

Before proceeding with a checklist, it is also important to note the documents that you are most likely required to provide. You can give yourself major ease by arranging all the records required before you apply for either a home loan or pre-endorsement. It is one less thing to stress over later when you’ll be under duress.

Furthermore, it will allow you to get copies of whatever’s been lost in your documenting framework, just in case.The documents are as follows:

 

For New Purchases

  • NRIC duplicates (for all proprietors and borrowers)
    • For employees: Latest 3 months computerized payslips, most recent Notice of Assessment and most recent annual CPF Contribution History
    • For self-employed/independent employees: Latest 2 years Notice of Assessment as well as Latest 3 months electronic payslips and/or most recent annual CPF Contribution History
  • Most recent CPF Ordinary Account Statement (if CPF funds are to be utilized)
  • Option to Purchase (OTP)
  • HDB printout demonstrating any outstanding credit taken from HDB
  • Most recent credit proclamations
  • Most recent Rental Income articulations (assuming any)
    • Provide Tenancy Agreement and Stamp Duty Certificate just if there is at least a half year remaining in the lease
  • IRAS Property Account Summary demonstrating the quantity of properties you own

 

For Refinance and Cash Out

  • NRIC duplicates (for all proprietors and borrowers)
    • For employees: Latest 3 months computerized payslips, most recent Notice of Assessment and most recent annual CPF Contribution History
    • For self-employed/independent employees: Latest 2 years Notice of Assessment as well as Latest 3 months electronic payslips and/or most recent annual CPF Contribution History
  • CPF Property Withdrawal Statement
  • HDB printout demonstrating any outstanding credit taken from HDB
  • Most recent outstanding housing credit statement from existing bank (Might not be needed) or Title Deed for completely unrestricted properties
  • Most recent Rental Income articulations (assuming any)
    • Provide Tenancy Agreement and Stamp Duty Certificate just if there is at least a half year remaining in the lease

 

Step by Step Guide in the Mortgage Loan Process

Step 1. Find your dream home

When you select for a property, keep in mind that the loan amount you can borrow even with a loan depends on many variables; such as your salary, the Loan-to-Value (LTV) ratio, the Mortgage Servicing Ratio (MSR), and more.

With all of these factors considered, you can proceed to ask for assistance from a Home Advice Specialist/Relationship Manager to figure out your options, and then download a copy of the Option to Purchase (OTP).

Step 2. Apply for a loan

Once you are set on a specific property, your home loan will be evaluated and analyzed. Your eligibility to acquire a home loan will be determined through these documents:

  • Application Form,
  • NRIC (for Singaporeans and PR) / Passport (for foreigners) of all applicants,
  • Option to Purchase,
  • Income Documents,
  • Financial commitments,
  • HDB Flat Info and Financial Information.

Step 3. Accept loan

After successfully going through evaluation, get a home loan approval. From there, you’ll sign a Letter of Offer and other documents relating to Home Loan.

Step 4.

For a new property purchase: You must sign a sale and purchase agreement.

In the case of a resale: Exercise the option-to-purchase agreement

First you must meet a lawyer, either your own lawyer or your bank’s, to sign the Option-to-Purchase document. From there you must move on paying the relevant Stamp Duty in cash. If applicable, don’t forget to reimburse from CPF.

It is important to note that Stamp Duty has to be paid for within 14 days of signing the Option-to-Purchase document. After receiving the S&P, you must then pay the remaining 20% down payment.

The following documents must be prepared:

  • Option-to-Purchase Document
  • Cheque Book
  • NRIC
  • CPF Statement
  • Others. You can seek assistance from your or your bank’s lawyer to determine any other possible documents that may be required.

Step 5.

For a new property purchase: You must finalize your home loan.

In the case of a resale: You must pay the remaining downpayment

Proceed to the lawyer’s office to sign your mortgage documents. From there, you must proceed on to and pay the remaining unfinanced portion of the down payment in cash or CPF if applicable, as well as any legal fees you might accrue. The lawyers will handle and take the appropriate legal action for the purchase of property. It is also important to consider an application for the POSB Renovation Loan nearer to the collection of keys. Lawyers will take appropriate legal action on the purchase of property.

Step 6.

For new property purchase: Make progressive payments

For resale: Complete resale

Once you receive the bank letter on progressive disbursement, you must then ensure that the Loan Servicing Account has enough cash for monthly installments, to be charged during the first of each month. Then you proceed to the seller to collect keys, and then receive the bank letter on loan disbursement and the monthly installment amount.

Step 7. Move in

It is important to make sure the Loan Servicing Account or CPF has sufficient balance for the installments charged per month (CPF charges are deducted each Sunday between 6th and 12th of the month). You must then receive the issuance of Temporary Occupation Permit (TOP), and finally, collect the keys to your home.

 

What Does it Mean When a Mortgage Loan Is in Processing?

You would usually need the assistance of a mortgage loan processor before and after closing your loan.

The processing begins once all documents are provided. The processor will then assess and verify your documents and other financial information.

What you should seek after is somebody who’s a specialist with a keen dedication on processing your home loan application through the framework in an opportune manner. In this sense, your processor’s objectives cover consummately with yours.

 

mortgage loan

How Long Does a Mortgage Application Take to Be Approved?

The mortgage loan process may very well be stressful especially for first time applicants, and relying upon your conditions and the timetable may be longer than you anticipated.

Re-evaluations and confirmations of all applicant documentation are usually required. Employees must follow all rules and oblige an ever-developing rundown of compliance checks, all of which can extend the ideal timetable.

The truth of the matter is, your processor is liable for guaranteeing your application even with the existence of external guidelines and internal rules. Also, it’s profoundly far-fetched a mortgage loan processor will actually have the discretion to overlook any unsubmitted or lacking prerequisites.

It is also important to note that affirming the data needed requires a significant amount of time—particularly if your references are hard to contact or do not want to coordinate.

 

How to Download Your Documents

  • Your Notice of Assessment from IRAS

    1. First you must proceed to the IRAS Website.
    2. You must then log in to “myTax Portal” with your Singpass or IRAS pin
    3. Under the “Notices” tab, select “Individual”
    4. Choose the most recent Notice of Assessment, and download it as a PDF copy.
  • Your latest 12 months CPF Contribution History from CPF

    1. Visit the CPF Website
    2. Using your SingPass, log into “my CPF Online Services”
    3. Go to “my CPF Online Services” and then select “My Statement”
    4. Step 3 Go to Section B, and select “Contribution History” and the “Period”
    5. Step 4 Select “Download statement in PDF format”
  • Your HDB Flat Information & Financial Information from HDB

If you are an owner of a HDB flat, provide both your HDB Flat Information & your HDB Financial Information. If you do not own any HDB flat, use your SingPass to log into “MyHDBPage” at the HDB Website and take a screenshot of the message that you do not own any HDB flat.

HDB Flat Info

Step 1 Go to “Login to MyHDBPage” at HDB Website, and use your SingPass to enter

Step 2 Click “My Flat”

Step 3 Proceed to “Purchased Flat”, select “Flat Details”

Step 4 Choose “Save to PDF” on bottom of the page to download the document

HDB Financial Info

Step 1 Go to “Login to MyHDBPage” at HDB Website, and use your SingPass to enter

Step 2 Click “My Flat”

Step 3 Under “Purchased Flat”, select “Financial Info”

Step 4 Right click and click“Print” to download as a PDF file

It is important to note that if you are an owner of an HDB flat and/or you have a loan currently financed by HDB, you must be able to provide both your HDB Flat Information & your HDB Financial Information. If you are not an owner of any HDB flat, you must then print the screenshot with the message indicating that you do not own any.

  • Your Property Portfolio from IRAS

    1. Select “Log in to myTax Portal” at the IRAS Website and use your SingPass or IRAS pin to enter.
    2. Go to “Property” and click on “View Property Portfolio”
    3. Go to “View Property Portfolio”, and select “View Details”
    4. Click “Print” to save a PDF copy on your computer

 

Closing

There are numerous documents needed to manage a mortgage loan application. You need to submit various ones relying upon whether the application is for another purchase or renegotiating.

The prerequisites may slightly vary, depending on each bank’s prerequisites.You must prepare the accompanying documents for home loan officers to process and manage your application.

It is true that it might take some time to close a loan but also keep in mind that patience is the key, as cliche as it may sound. You will be borrowing a lot of money, so it is only reasonable that they take their time to confirm if you are worth lending to.

Their only fundamental goal is to ensure you can comfortably bear the cost of installments on your new home loan and won’t stumble into monetary difficulty later. Only treat this checklist as a guide. It is always better to consult your banks or personal financial advisors.

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