Hi,
Just wondering if the loan amount quoted on the offer and acceptance form (in WA) can be changed once the offer is accepted? ie: when you head off to the bank and decide you need $10,000 more for reno's. Why is the loan amount even relevant to the offer and acceptance form?
thanks
HI, I don’t quote how much loan I’m going to take out as it gives the seller an idea of my financial position and could work against me in negotiations if they think I have funds available. Alternatively it could work the other way if they have two offers and and there’s a chance you couldn’t get finance at 100 or 110% so they may go for the more financial person. I put in 100% loan and advise my bank of the amount I need. no problems so far though it should be noted that you are signing a declaration on the O&A so shouldn’t be taken lightly.
I think the part you are referring to is when a contract is subject to finance. If a contract only states that its conditional on finance being approved, then if dodgy bros approves you for a thousand dollars @54% then that condition has been filled. Problem is that its not enough to purchase the property of with a lender you are happy with. By having that amount stated in the contract the offer only goes unconditional once you get the amount of finance you need.
Before going back to the REA work out if you are likely the get the extra $10k approved and if it doesn't (you only get the original amount) will you still proceed with the purchase. If you will only proceed if you get the $10k and there is a chance that you may not be approved at the higher rate then give the REA a call. Any change will need to be signed off by the vendor. If you will definately get the amount you need or happy to proceed one way or the other then there is no real need to change the contract.
Gibbo1,
Thanks. that was really helpfull.
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