Hi all
I'm currently in the process of applying for finance for my first home and boy what a steep learning curve it is!
I saw a mortgage broker who has sort of rushed me into applying for a loan due to me having already put an offer onto a property without applying for preapproval. Silly i know, and letting myself be rushed is as much my fault as the brokers.
My question now is – if i have only signed for the broker to seek approval for the loan and in his words, haven't received approval yet, am I bound to go with this loan? And am I bound to pay the application fees stipulated by this loan? From my understanding it's a two stage process, where by approval is sought from the bank, before the documentation is arranged and I sign the contract with the bank for the loan…is this right?
Having sat down and calmly digested all the loan products currently out there I've found one that suits me better, but is with a bank this broker doesnt deal with. Which also means i'll effectively have sent him on a wild goose chase (which I do feel bad about…does this happen to you guys often? And if i can get out of it, how do i tell him best?)
Please help!
v. stressed out first home buyer!!!
Just tell him. He'll probably try to talk you around, that's his job. Sometimes brokers are good to have onside, even you think you may have found a better product. A good broker can be like any other good professional – very very handy. But of course, they're not all good, and some are a complete waste of time.
You'll get better advise than what I can give you about wether you can get out, but I would have thought it wouldn't be a problem, though you may be up for application and possibly valuation fees. Maybe. In my experience, your two part process is correct.
Your property contract should always be subject to finance approved by a financier of your choice(for private treaty sales). I think QLD contracts are automatically like this, but we always put it in anyway. There is no need to rush your finance application when you don't even have a property contract in place. (Unless you were going to purchase at auction – for which you DO need preapproval). Don't panic. She'll be right. Be prepared to wear a cost of a few hundred dollars if it turns out that you did get it wrong – those are real small bikkies when it comes to RE mistakes.
good luckThanks so much SHales…less stressed now. I'll talk to him and see what the actual cost of not using his services will be and decide where to go from there
thanks!
TMY
You most certainly are not bound by any loan offered by this Broker so merely write to him and tell him you do not wish to proceed.
Most lenders do not charge an application fee so you will be ok there as long as you havent paid for a valuation fee you should be able to get out without any cost to you.
Difficult to comment on whether any loan is appropriate for a client without all of the information but just be careful that if you go through a Bank you make sure they structure your loan correctly. Most lenders will have absolutely no idea.
Richard Taylor | Australia's leading private lender
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