Buying at Auction with LMI

Discussion in 'Loans & Mortgage Brokers' started by couq, 15th Mar, 2017.

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  1. couq

    couq Well-Known Member

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    Hi everyone,

    Wanting to ask a question.
    I will be looking at releasing equity to buy a new property but can extend to pay LMI for a higher loan.

    I have heard of pitfalls from Auctions with bank valuations coming back lower than auction prices. Is this common?

    Can LMI also be a stumbling block in buying at auction to the approval of a loan. I am looking at 84-86% loan for next purchase
     
    couq, 15th Mar, 2017
    #1
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Auction vals typically come back at purchase.

    in the 2 % they dont, then youd want to have a plan b and c

    Options include raising more equity from other props, trying another lender/valuer if possible etc

    Just make sure you have a REAL pre approval !

    ta
    rof
     
    Rolf Latham, 15th Mar, 2017
    #2
  3. couq

    couq Well-Known Member

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    How do you know you have a REAL pre-approval compared to a standard one?
     
    couq, 15th Mar, 2017
    #3
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    One that has been properly credit assessed and not just spat out by a system.

    Some lenders wont send deals to LMI for a conditional................

    ta
    rolf
     
    Rolf Latham, 15th Mar, 2017
    #4
  5. couq

    couq Well-Known Member

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    Thanks Rolf as always
     
    couq, 15th Mar, 2017
    #5