Getting Unconditional Approval

Discussion in 'Loans & Mortgage Brokers' started by AnaT, 2nd Mar, 2021.

Join Australia's most dynamic and respected property investment community
  1. AnaT

    AnaT New Member

    Joined:
    2nd Mar, 2021
    Posts:
    3
    Location:
    Sydney
    I currently have conditional approval for a home loan at NAB, and have exchanged contracts last Friday. Today, my broker informed me that for full approval, they were just waiting on the valuation report as well as another document. This document was sent in this morning, and my broker said they did a desktop valuation.

    As I exchanged contracts last Friday, I have until Friday this week to pay my deposit (5 day cooling off). However, I am still waiting for formal approval. My broker informed me that the assessor at NAB said that my loan will be approved as there are no outstanding issues, and it would just be processing the documents, however said they could not guarantee that the formal approval will be received by Friday.

    I was just wondering how long it usually takes to get formal approval, or in this case would it be a good idea to pay the deposit without the formal approval? I'm a first home buyer, so I'm not very familiar with all the processes, and am worried about losing my deposit or not getting the formal approval.
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,672
    Location:
    Australia wide
    should be a day or 2. Don't start to panic until 4.30pm on Friday. Even then you could ask for an extension.
     
    The Y-man likes this.
  3. AnaT

    AnaT New Member

    Joined:
    2nd Mar, 2021
    Posts:
    3
    Location:
    Sydney
    Thanks! I’m just concerned if I’d need to pay the deposit without the formal approval, and how risky that would be
     
  4. Lindsay_W

    Lindsay_W Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    4,982
    Location:
    QLD/Australia Wide
    Nab are pretty quick at the moment. It's very rare to lose a deposit.
    As per your broker's advice, you should be fine.
     
  5. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,130
    Location:
    03 9877 3000
    Ask your broker what the chances of losing your deposit are.

    Long approval times are common now. Everything is busy at every level. Chances are the document that you provided was something fairly meaningless, the bank is just checking every possible box. We generally get a good feel for when something is going to be a problem and when it's just a paperwork excercise.
     
  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,672
    Location:
    Australia wide
    Take legal advice. You would be paying it under a contract. You can request an extension as well.
     
  7. Redom

    Redom Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    4,607
    Location:
    Sydney (Australia Wide)
    Extending cooling offs are not uncommon - many banks are a bit slow and these things happen.
    NAB are a quite quick, but 5 days can always be a bit tricky to navigate and generally goes to the last day or two to get done.
     
  8. Lindsay_W

    Lindsay_W Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    4,982
    Location:
    QLD/Australia Wide
    Nab are at 3 business days for purchases at the moment so I reckon you'll be OK
     
  9. AnaT

    AnaT New Member

    Joined:
    2nd Mar, 2021
    Posts:
    3
    Location:
    Sydney
    Thanks everyone. It's good to hear that losing a deposit is rare- I'm just a bit mindful of giving it without having received formal approval as I'm taking the pessimistic view- i.e. if I don't get approval. This is as settlement is supposed to take place 6 weeks after contracts are exchanged, and I am under the FHLDS so I cannot approach some lenders for my loan if I don't get approval with NAB.
     
    Lindsay_W likes this.