Are pre-approvals granted for general (ie unspecified) property purchases up to ‘x’ amount or do they specifically relate to property ‘y’ (identified for possible purchse) for x amount?
James
They are general, up to a specific figure that you apply for.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
How long are they valid for usually?? Thanks MH
James
3-6 months depending on the lender.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi James
Make sure you don’t count too much on the pre-approval though (especially where LMI is involved).
Just had a case this week where the client had pre-approval and went unconditional on that basis, only to have the mortgage insurer knock back the application.
Make sure you still have a finance clause in the contract and in that finance period, get a formal letter of approval from your chosen lender.
Better to be safe than sorry.
Regards
Brendon
Acute Mortgage Reductions
‘Better Finance for More Homes Sooner’
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