A Brief Home-Buying Guide (No Broker)

Buying a home is not difficult, provided that your stocks + funds + savings are sufficient to cover the down payment.

If the process goes smoothly, it is expected that completing the steps below will take only 4-5 working days within a month, after which you will own your own property.

(No real estate agent is needed. Why would you need one???)

Note:

This tutorial is based on my process of buying a second-hand home directly from the seller. It is not the process for buying a brand-new house. However, the procedure for buying a new house is not significantly different. For specific details, please consult the seller.

Considering that obtaining a housing provident fund loan requires extra administrative effort and that the funds are typically repaid first during the repayment phase—meaning it actually saves very little money—I decided to forgo the provident fund loan entirely and use a purely commercial loan. This simplifies the process, as I only need to deal with a bank.

1 Understanding Market Conditions and Policies

First, take some time to understand urban planning, functional zoning, price ranges, and geographic advantages and disadvantages.

Visit several real estate developments, ask agents, and learn about current price trends and fluctuations.

Of course, remember to search online for trend data:

At the same time, you need to check national policies to confirm the current down payment ratio, preferential policies, home purchase restrictions (household registration, social security), and interest rate changes.

For example, the current policy in Suzhou is:

• Minimum down payment of 30% (for housing provident fund loans, the minimum down payment is 20%. However, I did not use this method)
• Loan interest rate is 4.1
• To buy a house, you need Suzhou household registration or at least six months of social security payment records

2 Determine the house to purchase

First, determine what type of house you like, its size, and your living requirements.

Decide on the location, the condition of the house, the interior finish, nearby schools, the surrounding environment, noise levels, and parking availability.

Negotiate with the seller to agree on an approximate price. It is appropriate to negotiate for a lower price.

Once the approximate price is determined, multiply it by the down payment percentage to calculate the required down payment. You need to arrange funds in advance to pay the down payment.

This step may seem easy, but it is actually the most critical. A wrong choice could lead to years of regret.

3 Choosing a Loan Bank

Casually pick a bank on the street. Go inside and ask about mortgage services.

Determine which of these banks is the closest, least troublesome, willing to lend, and what their approximate interest rates are. Add their loan officers on WeChat.

Reach a verbal agreement with the bank to ensure that at least one bank is interested in lending to you.

4 Conclude a Preliminary Sales Contract

You can sign a bilateral contract with the seller to avoid the risk of one party backing out or defaulting.

Simply search online for a "Personal Residential House Sale Contract," print two copies, and sign them.

At this stage, you can pay a deposit.

5. Visit the Housing Administration Bureau to Complete the Online Contract Signing

The buyer and the seller should both bring two copies of their household registration books (hukou), two ID cards, and one copy of the property ownership certificate, and go to the Real Estate Administration Bureau to apply for the online contract signing.

Inform the Real Estate Administration Bureau that a bank has verbally committed to providing a loan.

This step is only to get the Real Estate Administration Bureau to begin reviewing the transaction.

At this stage, you will be asked to sign the following:

• "Confirmation of Information for Self-Handled Transaction Contract"
• "Buyer Information Collection Form"
• "Buyer's Letter of Commitment"

Afterward, you will receive a "Real Estate Transaction Information Business Form."

Wait for approximately 3-5 days, and the Real Estate Administration Bureau will contact you to proceed with the process.

6 Applying for a Bank Card

The buyer and seller go together to the previously selected bank to apply for a Class I bank card.

After obtaining the Class I bank card, you need to increase the transaction limit to cover your down payment. To increase the limit, you need:

• One year of transaction history from your recent salary card (you can consult the bank where your salary card was opened)
• The signed bilateral contract "Individual House Sales Contract"
• The "Real Estate Transaction Information Business Form" registered on the Housing Administration Bureau's online platform

The bank may refuse the request due to concerns about potential fraud. If they refuse, it is not a problem; you can return to complete this step later.

7 Set Up Fund Escrow (Have the Housing Administration Bureau Act as the Transaction Intermediary)

Buyers and sellers must bring the following documents to the Housing Administration Bureau to apply for fund escrow: two copies of the household registration book (hukou), two copies of the ID card, one copy of the property ownership certificate, and two bank cards.

This step is to have the Housing Administration Bureau provide the fund escrow agreement, deposit the down payment, and facilitate the bank's loan approval process.

At this stage, you will be required to sign the following documents:

• "Existing Home Transaction Fund Escrow Agreement"
• "Existing Home Transaction Information Confirmation Form"

After signing, you will receive one copy of the documents. Keep these materials safe and prepare for the next step.

8 Pay the Down Payment

After signing the Fund Custody Agreement, you need to visit the bank to make a payment in accordance with the agreement's requirements. Please bring:

• ID card
• Bank card

Transfer your entire down payment to the Housing Administration Bureau's custody account. In the transfer purpose field, specify: Non-loan + Agreement Number.

Given the large amount, multiple confirmations are required. Upon completion, you will receive:

• 《Receipt for Personal Transfer Business Acceptance》

After the transfer is complete, please print a copy of the transaction statement as well. You will need it later.

9 Preparing Business Loan Documentation

(Note: Considering that obtaining a housing provident fund loan requires extra effort and saves only a small amount of money, I have decided to completely avoid using a housing provident fund loan and rely solely on a commercial loan.)

The buyer needs to prepare:

• ID card and a copy
• Household register (Hukou) and a copy
• Proof of marital status and a copy (not required if unmarried)
• Credit report (check and print at: https://ipcrs.pbccrc.org.cn/)
• "Existing Home Transaction Information Confirmation" and a copy
• "Existing Home Transaction Fund Custody Agreement" and a copy
• Down payment transaction record for 1 month (i.e., the transaction record of the newly opened bank card, which must include the record of the down payment transfer)
• Proof of income and employment certificate (can be provided by the company)

The seller needs to prepare:

• ID card and a copy
• Household register (Hukou) and a copy
• Proof of marital status and a copy (not required if unmarried)
• Property ownership certificate + land use rights certificate and a copy

10 Apply for a Loan

Bring all the aforementioned materials and two people to the bank previously agreed upon.

Generally speaking, you might have chosen a branch that does not handle loan business. However, don't worry; they will provide you with the contact information for a loan specialist.

Contact the loan specialist, who will provide you with an address. Take the aforementioned materials to that address to apply for a home loan.

The loan specialist will invite you to a meeting room to carefully discuss the detailed loan process with you. The discussion may cover:

• Monthly repayment dates
• Whether early repayment incurs penalties
• Whether to sign for equal principal repayment (high initial pressure) or equal principal and interest repayment (slightly higher total interest)

Anduin considered that future earning capacity would increase, and that money would be worth less in the future, so paying extra early on would be a loss. To minimize early payments, equal principal and interest repayment was chosen.

After submitting the application, wait for approximately 3-5 days. The bank will contact you.

After the loan is approved, the bank will inform you that the funds have been transferred to the escrow account. Thereafter, you need to ensure there is sufficient balance in your card on the repayment date each month to make the payment.

After disbursing the funds, the bank will mail you:

• Personal Loan Certificate
• XX City Real Estate Registration Application
• Personal Home Purchase Loan and Guarantee Contract (a thick booklet)
• Copy of the bank's business license
• Copy of the bank's legal representative's ID card

11 Transferring Real Estate Ownership

At this point, the escrow account already holds the full amount required for this real estate transaction. Proceed to the Real Estate Administration Bureau together with the seller. Bring the following:

• The 5 documents provided by the bank:
  • Personal Loan Borrower's Note
  • Real Estate Registration Application
  • Personal Home Purchase Loan and Guarantee Contract (a thick volume)
  • Copy of the bank's Business License
  • Copy of the bank's legal representative's ID card
• ID card
• Property Ownership Certificate
• Household Register (Hukou)

S1 Tax Payment

During this process, you need to handle tax payment. Before paying the tax, a contract must be signed:

• Detail Sheet for Taxable Price Assessment of Existing Home Transactions (This includes the method for calculating your taxes; the tax amount may be 1.5% of the property price or higher.)

Pay the tax using your bank card. Be mindful of the transaction limits on your bank card.

After paying the tax, you will receive:

• Deed Tax Payment Certificate
• XX Province General VAT Invoice
• Tax Payment Certificate of the People's Republic of China

S2 Contract Signing

Sign the 存量房买卖合同 here. (5 copies)

Also, the 双方婚姻关系或其他社会关系证明 must be signed.

Provide the 身份证 + 户口本 to obtain the 申请人身份证明.

S3 Real Estate Registration Acceptance

First, request the following documents and have them signed:

• Real Estate Registration Power of Attorney (provided by them; this will be returned)
• Real Estate Registration Application (Remember? This was given to you by the bank. However, note that once submitted, they will not return this document!)

Submit the above two documents to receive the following:

• Real Estate Registration Acceptance Receipt (this will be returned)

Using the Real Estate Registration Acceptance Receipt above, it will indicate that you can proceed with the registration once you have gathered the following documents:

• Proof of marital relationship or other social relationship between both parties (obtained in Step S2 above)
• Applicant's identity proof (obtained in Step S2 above)
• Deed Tax Payment Certificate (obtained in Step S1 above)
• Mortgage contract and principal debt contract (bank contracts)
• Existing Home Sales Contract (obtained in Step S2 above)
• Real Estate Ownership Certificate

Afterwards, the following items will be returned:

• Real Estate Registration Fee Notice (two copies)
• XX Province Non-Tax Revenue Payment Notice (two copies)

S4 Pay Registration Fee

Finally, some registration fees need to be paid. But don't worry, it's likely not expensive, generally costing only a bit over one hundred yuan. You can pay via WeChat Pay by scanning the QR code on the fee notice.

At this point, the property transaction is complete, and the buyer needs to make repayments on time.

S5 Obtain the Property Ownership Certificate

Please wait for 3 business days, then take the above documents to the Real Estate Registration Office. Apply for the certificate, then sign the following documents:

• Stub of Real Estate Registration Certificate

Once signed, you can collect the documents:

• Real Estate Ownership Certificate of the People's Republic of China
• Real Estate Registration Certificate of the People's Republic of China

These two documents look absolutely stunning. Treat yourself to a nice meal after picking them up.

12 Withdrawing Housing Provident Fund

Considering that the housing provident fund may be used to pay the mortgage, you can set up scheduled withdrawals from the provident fund.

13 Mail the Real Estate Registration Certificate to the Bank

Submit the real estate registration certificate to the bank to complete the mortgage.

Generally, contact your loan officer and find a way to deliver it to them.

14 Checking Bank Card Pipelines

Once everything is set up, there are four major financial events on your bank card each month:

Dates and amounts are for reference only

• 24th Credit card repayment window opens (credit card statements are typically issued on a specific day each month and must be paid off within the next 10–15 days, but payment is not required on this exact date)
• 26th +8000 Housing provident fund deposit; if the provident fund balance is sufficient, this amount exactly covers the mortgage payment.
• 27th +15000 Payday
• 29th -10000 Automatic credit card payment
• 31st -8000 Automatic mortgage payment

As long as you confirm that your credit card spending for the month does not exceed your salary income, there will be no risk of default.