Application deferred

Hi guys! Hope all is well.

This is my third post in the group and I am very overwhelmed with all the responses from you. Thank you all

I would like to ask if your preapproval home loan application has been deferred and the bank asked for additional docs and you complied swiftly, how long will you get the result? I applied thru a broker and a bit disappointed because 2 weeks have already passed only to find our today that our application is deferred. Would we better apply to another bank pr wait for the response of Westpac.


Thank you in advance

 

Thanks for the reply @Rolf Latham.
It is for an IP. Our broker just submitted the 2 clarifications that WBC asked just today right after he received the letter from WBC. Fingers crossed we get a feedback before the week ends.

 

Is there a cooling off expiry looming?

 

None actually. However, we have until this week to hold the land we like pending finance. If still no preapproval this week then they will give away the land to other buyer. ☹

 

Not brokers fault.
Wbc taking upto 37 days in some cases to settle or formally approve.

There were better options. Right now, stick it to broker and babk soon they prioritize.


Regards

 

If you don’t want to lose the land, do you or your broker have a plan B in case Westpac don’t come back in time?
As mentioned in your other thread, direct with CBA can have a 2 day turn around... and it’s 2 days from the weekend today.

 

If that's the case, why go for a pre-approval?
Could you make a formal offer subject to finance and pay a holding deposit? Then go for a full approval straight away. This way you're actually holding the block subject to finance, at the moment there's nothing technically holding this block for you and a pre-approval is not an formal approval of finance.
You do not need a pre-approval prior to making an offer to buy.

 

@Liza28 How did you go?

 

Hi Lindsay. Westpac hasn't finished the assessment yet exactly 3 weeks now. They asked 2 very simple questions last week via our broker. Then just Tuesday this week, the assessor asked another simple question. Those questions they asked were actually can be found on the documents we've submitted. We do not know why they asked those things, maybe just to prolong the process? Or maybe they want to be "very very very"sure? Eventhough we wanted to halt our application and apply to CBA instead but they already have accessed our credit files. A bit frustrated with the process but just have to wait. Our broker said it must been slow because of the covid pandemic. It's a waiting game but all good.

 

Assessors can be strange like that, sometimes it does depend on who is actually working on your application from the bank side some assessors are more experienced than others.
Must be very close to getting the approval now.

 

@Lisa28 I think the reason they ask these questions is because they don't pay attention. All lenders are guilty of this. To be fair, there's dozens of data points, which can be different from one application to the next. It's very easy to overlook something even if it's already been pointed out.

People tend to think that home loans are a simple process of fill in a few forms, get the money. It's actually an extremely complicated process that has to be 100% right and there's so many components it's easy to overlook something.

Last week the CBA asked me for documents which I have clearly already sent them. One of the questions made me wonder if the assessor was looking at another application when the notes were entered...

Westpac's turnaround times are well known, as are most lenders. As of right now, they're quoting over 30 days to loan assessment. ANZ is just as bad and NAB has been a train wreck for almost 6 months. Honestly your broker should know this and have made you aware of it right at the beginning.

 

Westpac are really slow at the moment due to the impact of COVID on operations, but if your broker escalates through the right channels they're good at being flexible to meet critical milestones (purchase settlement dates etc).

 

Thanks Linda. I really hope so. After all it's just preapproval and still have to go through formal approval when the time comes.

 

We thought so, the assessor didn't pay much attention which is a hassle to brokers and clients. However, I do agree that applying for home loans isnt't simple. Banks have to make sure borrowers are able to service the loan. Fingers crossed WBC will approve the loan amount our broker put in.

 

@Morgs, true. I know it is not only Westpac, other banks are slow as well because of covid's impact.

 

They've had it particularly bad unfortunately, while some others have managed to maintain 24-48 hour approval turnaround. St George as an example is back to 1 business day for new applications at the moment and for the most part their policies mirror Westpac's.