Resigning from work after pre-approval is granted!!! Help!

Hard to say, no set policy…it’s rare for them to check, but it does happen….; but just a side note if you go through a broker as part of our responsible lending obligation we will have to declare this ” possible change in financial in the next 12 month” …so i always recommend banks that has a policy in which they would accept a 1 day employment change over so the client is clear from day 1 where they stand and lower any potential lost/risk.

Regards
Michael

Good advice from the guys above.

Are you moving into another job? If so, is it in the same field and will there be a probationary period?

Cheers

Jamie

Another important variable is employment history – particularly if the deal falls within LMI territory.

Cheers

Jamie

Definitely in agreement here with what's recommended above: do not buy until you have found another job, preferably one with no probationary period (your boss might waive it if it's obvious you're a capable worker within the first month or so) or a short probationary period. And if at that stage you are really in a hurry to buy, ask your boss kindly for a letter to state that there is no probationary period and that you're employed at a permanent full time basis with a certain salary and work hours, a letter which should be printed on company letterhead and duly signed.

This was how I went about buying just one month after being employed. In my case this was necessary as well because of a combination of factors:

1. The lower salary from the old job wouldn't qualify for a large enough loan
2. Timing: the right property appearing at roughly the 'right' time.

In essence, your circumstances are unique and you have preferences of what constitutes the 'ideal' property as well, so you may feel compelled to buy if one hits the market even though your job is no longer secure. But rather than take a risk here which could turn into a painful sting, it'd be wiser to hold off till the job is secure. Furthermore, even if your dad is happy to help with repayments (as mine is if things go REALLY sour), I think family is just a 'back up'. Make sure you can manage on your own in the first place, even if things go pear shaped, otherwise you're definitely overextending. Of course, this is unless your dad is the one who desperately wants you to buy, then that's a different issue altogether.

Well done for starting young. I thought most university kids will be spending their savings on fancy clothes, getting a car loan or buying the next iPhone.

On the topic of LVR, beware that the bank may tolerate a lower LVR on a property in a country town as compared to a property in a large city or larger regional center. This means they may decide to loan you say, 70% of the value of the property instead of 80% which is currently the norm for property in the city (assuming no LMI).

I would suggest reading the bank documentation carefully. It's a guess that after settlement, the cheques have been exchanged and the bank has disbursed the funds to you, and in that instance you should be safe. I'm just considering the risk of you either losing your deposit if the bank does find out before settlement and refuses to finance your deal, or your dad has to come up with a couple of hundred grand cold hard cash to prevent you from losing the deal.

Consider firstly: are you dead set on having to buy a property before your next job? If so, why? Is it worth the risk? They say that good deals pop up all the time. Having a little patience could pay off in the longer run, rather than lying awake at night for days on end prior to settlement.

Yes Michael dont you love the Bank West Pre-approvals.

We approve your loan conditional upon you submitting a new application and all supporting documentation and we going through it with a fine tooth comb and seeing if there is any reason why we cant decline it.

Luv those lenders.

Cheers

Yours in Finance

Possibly the most painful lender to deal with IMO. Bankwest = premature greying of the hairs.

Cheers

Jamie