Hi Guys and Girls
Just wondering if anyone has ever had a problem with their finance company getting final approval?I ask because i have just been pre approved (Yeah, time to hunt seriously !!)
For some reason i have this crazy fear that formal finance can be declined when i have found a property. Naturally if i went out tomorrow and bought a new car i could be in the poop, but its just one of many things spinning around in my head.
I know there are some finance people here.
Thanks
DaveI’ve never had a problem and I believe you shouldn’t have a problem as long as your situation doesn’t change from the information you gave them ie: as long as when they value your PPOR it is worth what you’ve told them, that you don’t lose your job, don’t take on new debt etc.
However, nothing is ever definite, so to play it safe, still have the “Subject to Finance by ‘nameofyourbank’ bank” should still form part of your contract. That way if an issue does come up and they won’t give you finance then you can still get out of the contract without incurring a cost.
PK
Dave,
PurpleKiss has offered some good advice,
Also keep in mind the lenders LVR may fluctuate subject to the area and valuation of the proposed property,
Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:1800 820 500
VictoriaPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
Also be aware that the property has to meet the banks requirements as well as meet valuation. Sometimes, for example, they can only take units in certain buildings if LMI is involved (height restrictions etc).
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Dave,
Remember, it’s only when you *sign* the contract that the cooling off period applies, and you can probably get formal approval before then anyway. My bank gives me approval on the same day, but informal approval before that so I can make an offer. It’s a numbers game and you can pretty much work out how much you can borrow anyhoo before you call the bank. Lots of mortgage brokers can probably run ytour numbers through software even before you go anywhere near your own bank. They’re kind, those MB’s [blush2]
I got finance approved informally today and then was asked to fill out an application form before I made an offer. But I wanted to know if I was in the game for the property before I made the app, so I told the bank I was gonna go ahead and make the offer and if it didn;t work out, well, I still have a couple of days to let go. Offer was accepted!! And now I have to apply for the loan- no problems! “subject to finance and BP” is an essentialk thing I’ve learned
kay henry
Thanks for all your replies.
I have no doubt i will be ok, just one of many things going through my head at the moment !!
Buying our first ip is exciting, but theres so much going on in your mind at the same time!cheers
dave
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