All Topics / Finance / multiple loan applications

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  • Profile photo of PFrankyXPFrankyX
    Member
    @pfrankyx
    Join Date: 2012
    Post Count: 33
    October 26, 2012 - 11:21 am

    Hi, I am currently under contract on a property in Gladstone and have had to obtain multiple loan applications.

    The initial loan through my broker was rejected by the mortgage insurer (90% loan) as the valuer classified Gladstone as a category 4 (high risk) area on market volatility and stability. I personally am not concerned about my choice in area.

    Anyway, since the initial application was rejected on that behalf, I have since gone to my bank and also had my broker seek an alternate source.

    My bank has put together a pretty impressive package and yet to receive formal approval, however we received formal approval from the lender the Broker had sourced.

    My question is, if we recieve formal approval from both new lenders, can i just choose one and not be penalised by the other we choose not to go with. No loan documents have been signed.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    October 26, 2012 - 11:23 am

    Shouldn't be an issue. Just choose one – and sign the one lot of paper work.

    Might be an idea to not withdraw the other application from the other lender just yet (just in case). Their approval should be valid for 90 days.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of PFrankyXPFrankyX
    Member
    @pfrankyx
    Join Date: 2012
    Post Count: 33
    October 26, 2012 - 11:28 am

    Yes, that is the plan. I just wasn't' sure if there are any hidden fees once a formal approval had been given, such as their valuation, legal costs etc.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    October 26, 2012 - 11:42 am

    Not usually.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    October 27, 2012 - 11:15 am

    Just make sure the new lender doesn't use the same mortgage insurer as even if the Bank approve under DUA the Insurer might still scupper the deal at the last minute.

    You Broker should be aware of which insurer the lender uses.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of TheFinanceShopTheFinanceShop
    Participant
    @thefinanceshop
    Join Date: 2012
    Post Count: 1,271
    October 27, 2012 - 11:35 pm

    Westpac can go up to 95% but the max loan amount is $500k. What is the loan amount?

    Regards

    Shahin

    TheFinanceShop | Elite Property Finance
    http://www.elitepropertyfinance.com
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    Residential and Commercial Brokerage

Viewing 6 posts - 1 through 6 (of 6 total)

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