It can be said that real estate investment loans have a longer review period than other loans.If you already have a track record, the review may be completed in about two weeks, but if you are new, it may take more than two months.This time, we will explain why the review of real estate investment loans takes a long time and the materials you should prepare to make the review as smooth as possible.
table of contents
Review period for real estate investment loans
If the applicant has enough attributes to pass the loan screening, or if there is a long track record with the financial institution that has already applied, the screening may be completed in about 1 to 2 weeks.Other than that, if it takes time to review cash flow and collateral guarantee, it will take XNUMX to XNUMX months or more.
The points that banks and other financial institutions focus on when lending are whether the repayment can be made on schedule and whether the borrower has the credit to be able to repay.
Profitability of the property, whether the applicant's place of employment is stable, whether the income status is stable based on past withholding slips , how much other assets you have, and whether you are in a situation where you can save stably, etc.If you do not clearly meet the screening conditions, such as an annual income of 2000 million yen, financial assets of 1 million yen or more, and a managerial position at a large company of 10 years or more, it is difficult to get results immediately.
Related article:What is the initial cost of real estate investment?Thorough explanation of the breakdown
Flow of real estate investment loans
In most cases, the loan will be decided after examination by each branch of the bank and approval by the head office.
As a series of flows, we first consult with financial institutions such as banks, and at that time we submit an application form for examination to the person in charge.After confirmation, the person in charge raises it to the superior, and after confirmation by the superior, the superiors of each department, such as the manager of the loan section, the manager of the deposit section, the manager of the liaison section, and the manager of the foreign exchange section, also enter.After confirmation by each superior, if there is no problem, then after confirmation by the deputy branch manager and branch manager, we will finally submit a request for approval to the headquarters.
Additional documents may be requested along the way.Since the information to be collected is wide-ranging, the documents given by the first person in charge may not be sufficient.This will extend the period of time.Depending on the scale of the loan, the Headquarters may make payments by the person in charge of screening, or by the manager of the screening department.Even if it goes through a branch office, it may be sent back to the head office because there are inadequacies.
Real estate investment loans with such a large amount of money take time to be checked in detail by many people involved, and you can see that the examination results cannot be given immediately.
It is important to reduce the burden on the person in charge in order to have the real estate investment loan go through smoothly.
We can see that the reason why the review period is prolonged is that it takes time and effort to prepare the documents, such as the necessary documents being sent back due to the checks by many people involved.For this reason, from the contact person to the manager of each department, the deputy branch manager, the branch manager, and the person in charge at the headquarters, submit the necessary documents to the contact person in advance to reduce the burden on the person in charge and make the process go smoothly. That's the point.
Specifically, the following documents and materials are required.
Materials related to properties
Property overview, certified copy of register, public map, land survey map, building drawing, details of property tax and city planning tax, sales contract with real estate company
Loan evaluation request form
Property information, desired loan amount, desired loan period, borrower (individual or corporate), collateral/guarantor, specific flow of funds
Identification documents
- Curriculum Vitae (hometown, university, work experience, maintenance qualifications, family structure, etc.)
- List of financial assets (savings, stocks, insurance, etc.)
- Identification (driver's license, etc.)
- Withholding slip (for the last XNUMX years)
- Final tax return (for the last XNUMX years)
- Certificate of loan (repayment schedule)
- Lease agreement (if renting)
Show yourself actively doing research
In addition, if you can show that you are researching the surrounding conditions, such as photos of the exterior of the property, surrounding road conditions, and photos from the station to the property, it will be easier for the person in charge to have a good image.If you prepare these documents at a later date after visiting the person in charge at the counter, it will waste time and increase the burden on the person in charge, so prepare them in advance as much as possible.Since the person in charge deals with many cases a day in a limited amount of time, it is unavoidable to start the cases that proceed smoothly rather than the ones with defects.By preparing as many documents as possible, you can reduce rework and at the same time show the applicant's motivation for real estate investment, and that motivation will naturally be reflected when the person in charge prepares the request for approval.
Tips for negotiating terms
There is also a knack for negotiating terms.From the beginning, it is better not to tell too much about the interest rate, the repayment period, how many years, etc.
Banks and other financial institutions tend to shy away from irregular responses and want to proceed according to predetermined procedures.Therefore, let's first match the pace of the financial institution.It will give a better impression if you first convey the requirements and then negotiate after presenting the conditions.
This area is difficult for beginners, and there are cases where the loan could have been obtained if the negotiations were a little better.
If it is difficult to prepare documents for your first real estate investment, or if you are unfamiliar with negotiating, ask a real estate company that has a proven track record at that financial institution to help you, and they will also teach you how to get a loan from that financial institution based on past cases. .In many cases, it is better to have a person in charge of a real estate company who is familiar as a contact person at a financial institution, and depending on the case, there is no reason not to use it.
At Rich Road Co., Ltd., we will consistently support all aspects of investment real estate, from complete beginners to experienced people, from a wide range of real estate selection, loan consultations, post-purchase management, and renovations.
