Hi All,
Got this BrokerA referred by a friend. Broker A has recommended me go for St George, because of a particular loan which suits me. Broker A has only access to 9 lenders. However, St George currently takes ~ 4-6 weeks to process 'pre-approvals', which i find it way too long, before the FHOG starts to drop in end of September.
Next, i came across another BrokerB, referred by another colleague, this BrokerB has access to 24 lenders. I have approached BrokerB, now currently waiting for BrokerB to come to me on loans recommendation, hopefully with a lender that can process 'pre-approvals' within a week.
My question is
if i am happy with the Lender which BrokerB has recommended, provided the lender is able to process 'pre-approval' within a week, should i ask BrokerA to get St George to stop processing? Thinking about it, getting a pre-approval doesnt cost a cent, but have no clue when i apply for 2 lenders for pre-approval.Cheers
NitPre-approvals are really meaningless. Most brokers should be able to generate a pre-approval online in 10 mins. If the broker does not have access to the online system he will have to send in the docs and have them input by bank staff. St G is not providing any priority to doing pre-approvals at this time as they are too busy with the full approvals.
If you can get a pre-approval with one lender, i would suggest you just wait until you find a property and then re-assess who you will go with at that stage. Having the pre-approval may only save a day in processing anyway, so no big deal.
What you should be concerned about is the full approval.
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
I am with Terry a Pre-approval means absolutely nothing and is really a bit of a waste of time unless you are ready to go.
Most Brokers would have access to 25+ lenders but whether they use them all or not is a different matter.
Approal in a week with almost anyone is ni impossible these days.
Richard Taylor | Australia's leading private lender
Qlds007 wrote:I am with Terry a Pre-approval means absolutely nothing and is really a bit of a waste of time unless you are ready to go.Most Brokers would have access to 25+ lenders but whether they use them all or not is a different matter.
Approal in a week with almost anyone is ni impossible these days.
Hi Richard,
Are you referring to "Pre-approval"?
Ta
NitNit
Yes remember Pre-approvals have a limited life span and this varies from lender to lender.
If you had a loan pre-approved today but didnt sign a purchase contract for 45 days you would still need to start again with verification and supply of income and liability documentation.
As Terry has mentioned many lenders have a priority on full approvals where the client has signed a purchase contract and time is of the essence. Pre-approvals are low down on the pecking order list.
SGB offer in todays market nothing better than anyone else and serviceability is not easier. Begs the question why at the moment you would use them.
Richard Taylor | Australia's leading private lender
Qlds007 wrote:NitYes remember Pre-approvals have a limited life span and this varies from lender to lender.
If you had a loan pre-approved today but didnt sign a purchase contract for 45 days you would still need to start again with verification and supply of income and liability documentation.
As Terry has mentioned many lenders have a priority on full approvals where the client has signed a purchase contract and time is of the essence. Pre-approvals are low down on the pecking order list.
SGB offer in todays market nothing better than anyone else and serviceability is not easier. Begs the question why at the moment you would use them.
Just spoke to a friend who is working as a real-estate agent, he did advise me to do away the 'pre-approval', as my eligibility is pretty good in terms of stable income & and LVR, just go for full-approvals, and make an offer subject to finance approval.
Going for SGB, because there is a product which other banks do not offer
hi Nitdrops
What product is that? Is it the portfolio loan? It is a very good product, with ability to split the sub accounts etc. But from a tax point of view it can be less than ideal. I would only use a LOC for accessing built up equity myself. IO loan with a 100% offset is preferrable for other uses – and a cheaper rate.
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
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