Gross annual income of 4,600,000 yen.
Suruga initially told us they were willing to lend us the full 38,000,000 to build our home.
I have enough in overseas investments to simply purchase our home in a lump sum, though obviously that would be a poor financial decision.
I agreed to clear my 800,000-yen debt by the time of screening in July.
The reason for the July screening start date is that in July, I will officially become a direct-hire teacher for my Board of Education, which would lend more weight to my application.
A bank representative physically inspected our house lot and regularly called to collect more information.
By all indications, they expressed interest.
Proceeding with the screening was contingent on my becoming a direct hire.
Today, Suruga called me informing me that for reasons that they aren't at liberty to elaborate on, they can no longer proceed with our application.
My Japanese wife is the guarantor on our application, though her annual income is only 3,000,000.
Potential reasons for the rejection:
38,000,000 is a number that's over 8 times that of my annual income. I've read that banks are typically only willing to lend up to 7 times one's annual income.
My wife isn't a really strong guarantor given her income, so the bank may have grown doubtful of her ability to repay in the event that I was unable to continue mortgage payments.
While it was a shock to me to receive this news from the foreigner-friendly Suruga, I see that our financial circumstances give us a relatively high risk profile in their eyes. I see now that banks likely care less about one's investments than their ability to repay the loan with their income.
I applied for a single-mortgage loan. Though a joint loan with my wife would surely bolster our chances, I don't want her on the hook should anything happen to me and I am unable to continue making payments. To that end, I also intend on enrolling in group credit life insurance.
We've concurrently been talking with another bank (a 労金, specifically). With them, we named my wife's uncle as our guarantor. His annual income is eight figures, making him a stronger guarantor. The bank cleared him and, like Suruga, they are waiting for me to transition to my direct hire position before proceeding with their screening.
Not seeking advice. It just feels good to share. Maybe it will help inform other people also in the midst of bank loan applications.
by PencilMeInPenguin