Finance declined. What now?

It's a common scenario I'm afraid. The broker knows it'll get resolved over the next couple of days, but to a large extent it's out of his control. He avoids ringing you cause it's embarrassing, or he just has nothing to add to what he told you yesterday. The assessor is avoiding your file too. They have targets of 30 minutes per file for assessment and this one has already taken 2 hours and he will be blowed if he lets the file jump the queue of new files on his desk again.

It'd be more heartache for you changing brokers now. Wait until the loans settles and the house is built then have a look at your options. if you want to speed the process, get the builder to do the schedule exactly as the assessor last asked. Otherwise wait. its highly unlikely the loan will be declined from here, its just more negotiating.

 

I definitely do not want to change brokers. The broker I have is a good broker. When I decided to go with him the second time, I kind of knew what to expect. He was the same first time around, but he got the deal through. From my perspective it will be good to know that all is progressing fine. I am sure he will communicate when he knows something. It is just sooooo hard not to have an answer. Just wish the assessor will look into it soon. I suppose I will wait and see. Nothing I can do....

Thank you

 

Help from broker or anyone needed please.

Kept trying to get in touch with the broker with no results. I have rang NAB instead. After lots of back and forth discussions they have told me that the latest correspondence sent to the broker was that they are prepared to lend at 70% LVR only. When asked if it is due to the recent risk assessment as my property is I postcode 4211 they have said yes. The problem with this is that, although Gaven is in 4211, Gaven directly has not been listed as at risk. 3 other suburbs have out of some 10 suburbs with postcode 4211. Funny enough that I have sent in that correspondence via email to my broker and he did not responded. The other finding that surprised me was that the bank was offering 70% LVR from the price of land + construction as opposed to 70% LVR on the final value. Now this may be perfectly ok, I suppose, however my broker has submitted the application for 80% LVR from the valuation and not from the price of land plus cost of construction. What a mess... What was the broker thinking? Isn't it clear that a bank will lend against the lower of the two values? Any of you brokers here can help? What can I do? Any lenders out there that are ok to do an 80% LVR against the final figure, plus lend at 80% LVR on a property in Gaven 4211? Even if they lend at 80% LVR against the lower of the two values I can make it work.

Many thanks

 

What's your servicing like? There are most likely other lenders that will look at it if servicing is there.

 

What Jess said. Plus need to confirm the new lender is ok with schedule 2.

 

time 4 new broker

 

Thank you all for your responses.

Regarding the servicing, I have a steady PAYG income of $2640 net a f/night increasing to approx. $2700 from 15th of October. Been in the same job for 9 years, in the health profession. Have some credit card debt, however I also have funds in hand to clear some off, if need be. Have a fixed building contract, land loan at 78% LVR to be refinanced across as part of an construction loan. The recent valuation came back really good, so I would be keen to be able to use the same valuer/ valuation for any future dealings if possible.

Cheers

 

If you're serious about this, hit up one of the brokers on here and get the ball rolling properly. Get a valuation done, get the contract approved and go from there.

 

This. It is what it is - best to move on and get it resolved ASAP so it doesn't cause you any further delays.

Ensure whatever broker you use understands what happened with the previous application, so you don't have a repeat of the last problems which occurred.

 

I am extremely serious about it. Just a bit hard to know what broker to approach. The broker that I used last time was also active on Somersoft and Whirlpool. He seemed very knowledgeable but it seems he wasn't aware of the 70% LVR restrictions on 4211. Can this be debated with Homeside?

Thanks Jess

 

Thanks Corey. I would like nothing more than to have it resolved as soon as possible. Just afraid that it will happen again. Shame as all seemed to be progressing so well. Then all of a sudden no more communication from broker. I had to ring homeside and get an insight on what is happening.
Damn my luck!

 

Thanks Tobe, easier said than done. How can I confirm with the lender? Like I said earlier, if my loan would have been a straight forward one, I would have gone straight into a branch. However it is not that simple. Hence the need for professional advice. I thought I was getting it from my previous broker. I was convinced that he covered all bases before he put the application through. I got a fantastic building contract, etc, only to be shot down by the 70% LVR restriction. How come the broker did not check this before putting the application through? He knew that I need a 80% LVR loan. Anyway the end result is that NAB are happy to do a 70% LVR on land plus build and not on the entire market value which is pretty useless to me. The other downside is that I have an unnecessary credit enquiry on my file. What can you do? C'est la vie!

 

Is this another AaronC classic?

 

@Bubica42 It can't be debated with homeside but it can be avoided next time by talking the deal over with the lender before lodging.

 

You check the servicing and policy, you get the val upfront. You submit the deal.

Yes, you can check upfront when the lender like Nab and Westpac have specific postcodes or developments they restrict lending on.

There are some things you can't check like policy interpretations or credit score, which are more based on feel.

All lenders will only lend on contract value for a build however. The broker should have at least been aware of that. To use your great valuation, you will need to have a greater value on the land, because the lender will only lend to the value of the build contract for the build.

 

Totally sounds like Aaron C

 

Look guys, as someone looking to find someone prepared to work with me on this loan, I would feel uncomfortable to comment about the said broker. What I can say is that I am extremely disappointed with him. He has no work ethic at all. From the 9th of October when the bank got back to him with the proposal, he kept me in the dark. I have sent him countless messages, emails, phone calls. All to no avail. ...

 

That is a shame that it's happened to you @Bubica42 because that is 7 days you could have used to find an alternative loan product or broker if you'd know.
I hope you can find a new broker who can close off this dud application (thought might only be your original one that can do it) and get your a better suited product.