Hi
I have recently purchased an appartment in an Auction. The settlement date is around september which is 4 months after the Auction.
I have already filed for the final loan and mortgage broker is taking care of it. I have been adviced that it would take two weeks to get it approved.
My question is this.
If I leave my job around mid July after the final or unconditional approval of the loan. Will this have any effect on my final loan because the settlement is in September.
I have few problems happening at work and lot of people are being sacked and made redundant.
Please advice.
If you do loose your job do you still have the capacity for the repayments?
The lender probably won't know if you don't tell them – as long as the mortgage documents have been issued. But, be aware that sometimes if it drags on too long the bank may want to reassess the application and do some more checks. There are probably also conditions in the offer that you notify the bank of 'any changes in your circumstances'.
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
Surely you are not going to tell us that you purchased a property at Auction although have not had finance approved.
What will you do if the Banks valuation and the your purchase price are a mile apart. Guess that is a topic for another day.
I wouldnt be too sure that the lender will not ask for updated information nearer the time.
Most lenders will not issue the Mortgage Documents until near the settlement date so that their Title Search is not too far away from the Settllement date and it could well be that they ask for a payslip or two nearer to the time as verification.
Richard Taylor | Australia's leading private lender
Hi Terry,
I am hoping to get the final approval by first week of June. I have asked my solicitor to contact vendor for an earlier settlement. If it settles early then it’s all good everybody is a winner.
But if vendor decides to stick with the date then I guess I have to wait. I will not voluntary resign.
Now with the unconditional loans doesn’t it mean unconditional irrespective of employment circumstances.
It can happen with anyone…What do everyone do in this scenario
Hi Richard,
I already had the pre-approval from the bank before I went to the Auction. I have given the contract of sale to my mortgage broker who is getting everything approved for me.
Let’s see I guess I will wait and watch and everything goes smoothly.
Hi Giboo1, I already have a job offer from a different company so monthly repayments are not a problem at all. I don't want to go for a 3 months probationary period and bank would wait for me to get permanent. I want to sort out everything as soon as possible
This reminds me, i had a loan from ANZ once with the settlment dragging out. They ended up doing another credit check just before settlement. I guess this could have alerted them to changes in my circumstances, eg. getting a default, which could have lead them to start asking questions. So be aware of this.
I also had a friend who had a client with a unconditional approval from a certain lender starting with H. They then started adding conditions after it went unconditional!.
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
Try and stick it out until the settlement goes through. Compare the pain of your JOB at the moment with the potential pain of changing jobs and having a late credit check from the bank and complications or refusal of the loan. Grin and bear it and consider it all part of the cost of investing. Besides, instead of quiting, you may get one of those redundencies you mentioned.
I would have also thought that an unconditional loan is based on the circumstances on the loan application. I would imagine that you will find a clause stating if circumstances change then the bank reserves the right to "rethink". Richard would know more on this.
Cheers
newbi2 wrote:I would have also thought that an unconditional loan is based on the circumstances on the loan application. I would imagine that you will find a clause stating if circumstances change then the bank reserves the right to "rethink".
CheersSpot on newbi2 – although they would have to be aware of this. If it happened shortly before settlement there is unlikley to be any drama, but if it happened while the loan was in the process of going unconditional or had just done so, it is a different story. THere are some interesting clauses in the lending dcouments and or conditions that mention this.
THen again, if you have work and income similar/same/more I could not see it being any issue at all.
CheersThanks all for your help. This is truly a great forum. I will wait till settlement. Have to bear the burnt but let’s hope for the positive.
I think you'll find in 'the small print' that should your circumstances change (ie: employment), then your bank has the right to withdraw any previous 'unconditional' approval. Personally I'd be staying within the job until the finance was complete before risking losing it all.
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