So I got the results of my pre-approved loan application yesterday from MUFJ and was slightly disappointed as they were only willing to loan about 90% of the amount I had applied for.
When I requested the criteria for deducing such an amount, the bank was very courteous in their explanation that it was really based on the amount that the insurance company would cover in case of default. Unfortunately, the assessment process they explained is very gray and they could not provide any clear suggestions with regards to improving one's profile to be able to borrow more.
On the positive side, they did not reject me and the loan is approved up to that amount. It's up to me to find something that fits within that budget. At least one very important parameter has been set and this helps the overall planning. And could possibly help in land price negotiations...
Still I think I'd kick myself if I didn't go around and try another bank and see what they can loan me. Since the paperwork is all the same, it's just a matter of filling out the form. I submitted the papers today. In a way I wished I had submitted to both banks at the same time to save time. But lesson learned. I should get an answer by middle of next week.