Formal Loan Application – 本審査 (Hon Shinsa)

in Japan本審査 (Hon Shinsa) refers to the formal loan screening process conducted after the property purchase contract is signed. This is the bank’s final and comprehensive evaluation before approving your home loan.

What Happens in Hon Shinsa?

This stage involves a thorough check of:

Your financial profile

1. Income stability

2. Debt-to-income ratio

3. Employment status & contract type

4. Credit history (including domestic and sometimes overseas)

Your legal status

1. Visa type and length of stay

2. Residency record

The property

1. Property value (appraisal)

2. Legal compliance (zoning, structural integrity)

3. Whether it meets conditions (especially for loans like Flat 35)

Processing Time

• 1 to 3 weeks (depending on the bank and complexity of your case)

• Can take longer if documents are incomplete or need translation

After Approval

Once approved, you will:

• Sign a loan agreement (金銭消費貸借契約 / Kin-sen Shōhi Taishaku Keiyaku)

• Set a loan execution date (when funds are disbursed to the seller)

• Prepare for the property registration and final payment

Note:

• If rejected during 本審査, the property contract may be voided only if you have a loan contingency clause.

• Some banks may request a guarantor or additional documentation.