5 things you need to know Before deciding to buy a second-hand home loan
1. Loan to buy a second-hand house will not get the full amount of 100%
in applying for a second-hand home loan The bank will set a maximum loan amount of not more than 80%-90% of the purchase price or appraised value only. This is different from a new home loan that offers a full loan amount of 100% or more for furnishings. The credit limit depends on the borrower’s credit history and ability to repay.
But some banks may give a full amount of 100% of the purchase price or the appraised value. But there may be a loan limit to borrow up to 3,000,000 baht or have more rules for loan applicants, such as A person with income of 30,000 baht or more
In determining the bank’s credit line, there are many factors such as the deterioration of the house, its location, and the policy for accepting second-hand home mortgages in each bank. Therefore, when buying a second-hand house, prepare a reserve for the difference of 10-20% in the house value that cannot be borrowed.
2. Buying a second-hand house can’t pay down payment.
The down payment on the house will occur in the case of a new home that is first hand. It is an agreement between the seller and the buyer that the down payment must be paid until the reserved house or condo is completed and ready to transfer ownership. which may be repayable for a period of 6 months – 1 year or longer depending on the contract
But buying a second-hand house The buyer will not be able to pay down payment. If you want to buy a second-hand home, you will need to prepare a down payment of 5-20% of the house purchase price.
3. Buying a second-hand house takes more steps.
in the purchase of a second-hand home There is a more complicated and time consuming process to get a new home loan. before applying for a loan Buyers and sellers must negotiate to agree on a contract to buy and sell themselves. Then the loan applicant must request a copy of the land title deed from the seller. Ready to bring the purchase and sale contract to apply for a second-hand home loan with the bank. After that, the bank will assess the seller’s house price. Check the borrower’s qualifications and approve the credit line.
In case the house is mortgaged with other banks The seller must proceed with the mortgage redemption with the mortgage bank first so that the bank on the borrower’s side can accept the mortgage.
The process of transferring ownership, the buyer, seller and the bank must complete the transfer of ownership at the land office within one day. So that the buyer can take the house to mortgage with the bank requesting the loan. Including moving the house registration, including the water-electric meter to be completed, the purchase will be completed.
4. Buyers and sellers should agree on the costs well.
In addition to the house price, there are other expenses. more too which is the responsibility of the buyer and the seller to be jointly responsible There should be an agreement on what part of the cost. Which party will be responsible or how much will be split up? with expenses as follows:
- Transfer fee 2% (can be divided according to agreement)
- 0.5% stamp duty or 3.3% specific business tax (should be borne by the seller)
- Withholding income tax according to the rules of the Revenue Department (Should be the burden of the seller)
- Mortgage fee is 1% of the mortgage value. (should be the burden of the buyer)
5. Should prepare money for repairs or renovate a new house.
Of course, a second-hand house is in a used condition. There are some parts that are old or should be repaired. Buyers should prepare a reserve for repairs, improvements, additions or renovate a new home because the amount of used home loans we borrow does not include repairs and additions.
