Have i made the right decision? very nervous….exchange of contracts before final finance approval.

Was the contract subject to finance approval?

Did you or your Broker not undertake a private valuation before proceeding to Contract f not i think you ave been badly advised.

Would never say to a client in the current market to go unconditional purely on a pre-approval especially from the CBA who are notorious in down valuaing their properties to redce the LVR's.

Also find the CBA a strange choce for a PPOR as they dont have a fully transactional 10% offset account but i guess they do stil pay overrde commssion so maybe that was the reason for the Brokers recommendation.

Obviously i hope the deal goes thru for you but stil think the decision to go unconditional without a valuation is unwise.
  

Terry and Richard – what do you suggest Mia do now?  I am sure you are right but as she has already exchanged and is anxious about that decision, what course of action do you think she take besides waiting and hoping?

Mia
Im sure when your are playing with that sort of money, you took the contract to your solicitor first, I feel you did not, because they would have advised you to go subject to finance.  As the purchase is subject to finance.  The above comment are all good ones. When a brocker tells you to go unconditional on a contract and they have not approved you finance yet, I would be asking why. Valuation my be a concern as mentioned some of the valuations are not comming up the the price paid. 

Any way  you cant undo what you have done, if the finance falls over with that broker, give them a peice of your mind. And start looking for the money fast as you can.   Im sure you will be fine.

Best of luck.

T……………

Hi Mia

Sounds like you are experiencing the same things as me.  My broker said to exchange before we got the final approval although it was approved in principal.  And yes, the contract was unconditional. 
I was told I should trust them but … I just couldn't and have not yet exchanged. My conveyancing isn't very concerned about things either and my partner and I feel as though the only people looking after us, is us.  The bank is taking its sweet time (tap, tap, tap) and the real estate agent is pressuring us to exchange but seeing as we would be the only ones out of pocket if it all goes pear shaped we simply refuse to proceed until finances are guaranteed.

Great to hear you were able to reverse your decision in the nick of time.  You'll be able to sleep a little better tonight. 

"and waived our cooling off period-we are serious buyers and there are no problems with the unit. However, we have one thing which makes me question my decision….we have pre approval of $420 000 with CBA. We only need finance of $360 000 which my mortgage broker is processing now.I exchanged contracts before getting final approval of finance with the advice of my mortgage broker"

"My first decision was to tell them to go to hell-we will wait for finance,then my broker strongly advised me to go ahead,so,stupidly i did."

Thats like wiping your butt before you go. You can do it, but it just don't make any sense.


",and the real estate agent also looks like the uncouth,unprofessional he is."

Why blame the realestate agent,? He /She didn't sign unconditionally. You should have had this put in the contract yourself, if you wanted this protection.

Are you going to be the landlord of this property if it succeeds?

LVR  = Loan to value ratio.

mimimia,

Respectfully, You asked some questions regarding this transaction, I replyed with a question in order to see what the details of the contract were, in order to try to help you.

"What you don't know is that i was strongly advised by a trusted professional who is friends of the family to go unconditional on my loan.Also, the real estate agent who im dealing with has been instructed by mail by both the vendor and my solicitor because he has been harrassing me and my husband and nearly lost us as buyers and has actually lost previous buyers of this property due to his behaviour.Calls to me at 7.45am to urge me to go to my solicitor that morning even though we told him i couldnt make it for 4 days,calling me on sunday afternoons to call his vendor a 'cocksucker'  and an '85year old aresehole' for not wanting a strata inspection,abusing my solicitor verbally on the phone for insisting on a strata inspection even though there was one done just 2 months prior.Maybe you think this behaviour is ok judging from what you wrote to me? How could I think this behavior is Acceptable if its "What I dont Know"?
Unlike you herb, im not  "a new investor"Where did you get this information from? i have got 2 other properties and have never had this experience before, Were the other purchases cash buys or financed? If financed were they subject to finance approval clauses?i have also used the same solicitor and broker so both are trusted.??I have been very successful and happy with my dealings with all these people. But not anymore.
Also,i never blamed the real estate agent or anyone else for my decision,i blamed only myself.But thanks again for highlighting the STUPID bit.
May i remind you that this forum is supposed to be a place of support and advice…so forget about giving me your thoughts unless it is going to be anything but that THANKS".

 I Asked my question as the first reply,obviously not what you wanted to hear, as no response, in order to "support and advise".

I wish you well and I hope you get it sorted.

Herb.

"Thanks for your response Herb,i read your previous post last December when you were going to buy in Nerang and  you said yourself you are a new investor.Your question was a contractual question….not an investing one. That doesn't mean when you have been through this process you can't still make mistakes or that you deserve disrespect for making what can be an exremely difficult decision. Poor Boshy has had the same treatment as me.
I purchased both other properties with finance,but both contracts and this one were vastly different in their conditions to the others.My other ones were subject to financial approval but my last property had a vendor that was so relaxed about the whole situation,there is nothing 'usual' or 'normal' about contracts.
Therefore noone really has this right to comment on 'what they don't know' do they? i never asked anyone to pass judgement on my RA,the jibe was my own opinion.
Your question was not answered directly because i had a ream of advice from all of the lovely people on this link that satisfied my requirements i.e i was justified in my worry.
So to the people who spared their time and thoughts….Thank You.
Il let you know how i go".

Mia   et al

I think this highlights the importance and necessity of the legal profession. Having someone in your corner to throw a punch and be able to back it up is a great feeling when things go pair shaped.  Sometime things don't go as planned and people get emotional, stressed & frustrated. All normal stuff. However, as mentioned you are spending your money so you are the boss, not the broker, vendor or agent.  When I get a contract Im interested in I go to the solicitor (poor basted I know his is sick of me by now) and I do my best to make sure it 100%.  If there is something I want in the term & conditions we put it in. That's what the T & Cs is for your money your offer your conditions. 

I in the passed used to go unconditional & 30 days, but the vendor is more concerned with the price not the terms.  The agents bully tactics and other poor behavior are sad don't take it personally its the nature of the beast.  Rule number one protect yourself.   Good luck to you,when it comes to money noone is your friend.Play hard-ball.

Mia I dont know what state your in but in Vic. if you make a second offer (new contract) for the same place you dont get a cooling off period.
All the best hope thing go your way and you come out better off.

Cheers
T……………….