Join Australia's most dynamic and respected property investment community

How long would it take to get a pre approval / pre purchase analysis

Discussion in 'Property Finance' started by Paterson00, 8th Feb, 2016.

  1. Paterson00

    Paterson00 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    193
    Location:
    Perth WA
    Hi all,

    I have been working with a broker for a while now and looking at different deals incorporating different strategies on a number of different projects.

    After a few failed attempts a difficult projects I have decided to go to the normal buy and hold strategy I intended in the first place.

    I called my broker to let them know that this was going to be the case and was told that after they had finished putting a case together for another client they would re do my analysis for this type of purchase to see what my spend power would be etc. It has been a few days now and I have not received it.

    It is not uncommon for me to follow up to see where things are at after being told they would be carried out and not uncommon to wait a week or more for things like this.

    Should I be looking for a new broker? This company have all my details, we have a rapport etc. I like the brokers personality but get a little frustrated waiting for things like this. It is easy to switch. Am I being too demanding is my question I guess.

    How long should things take?
     
  2. tobe

    tobe Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    897
    Location:
    Melbourne
    Call the broker and ask. I usually tell clients when I will get back to them.

    Most brokers can model borrowing capacity for a simple purchase in less than 30 minutes, but it can take a lot longer if you have a larger portfolio, or wanted to model steps down the track (ie after 1st purchase, what does serviceability look like for 2nd purchase etc). If your income is inconsistent, the broker may need to wait for a policy response from one or more lenders, which can also take time.

    Service is an important part of the job, but that doesn't necessarily mean speed in all cases.
     
    Rugrat and Leo2413 like this.
  3. Redom

    Redom Mortgage Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    863
    Location:
    Sydney (West) and Canberra
    The broker should give you some sort of expectation of when to receive a response.

    I run a few cases a day usually, they definitely vary in time frame. Easiest case (FHB, nothing really in their A&L) can take 5 minutes. Complex cases can take a few hours, and longer still if i need to 'shop' around the scenario with lenders. For the complex cases, i'd usually let the client know whats going on and why theres a delay, its all about constant communication. In most cases, keeping people aware of whats going on meets/goes beyond expectations. I don't think you're being unreasonable in knowing whats happening.

    I wouldn't ditch the broker just yet, perhaps give them a call and ask. If they continually fail to meet your expectations, than as a customer enjoy the benefits of being a customer in a competitive industry and find your next suitable broker.
     
    albanga likes this.
  4. Santaslayer

    Santaslayer Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    74
    Location:
    Sydney
    A few days isn't really a long time to be honest. Use that time to actually source the property so you aren't wasting time.
     
  5. Frazz

    Frazz Well-Known Member

    Joined:
    2nd Aug, 2015
    Posts:
    59
    Location:
    Sydney
    Agree with the above points - the broker, like anyone who runs or works in a business, should be giving you a time by which they'll get back to you. Should there be delays to that, they should reach out to you and let you know in advance why they can't make it. If it's a complex modeling scenario, or if they are under the pump it is just so much better (from a customer perspective) for them to just let you know. There is nothing worse than being left in the dark!
     
  6. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,161
    Location:
    Canberra and Sydney
    Just call them to see where they're at with it.

    Cheers

    Jamie
     
  7. Paterson00

    Paterson00 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    193
    Location:
    Perth WA
    I was told it would be 30 mins until they can start working on my case and I think I am an easy one. I have one IP in the UK so I am told that the banks would not even need to know about that for lending here and I have a PPOR. I am looking to buy two properties over the next 6 months. One buy and hold and the other, buy renovate, re-finance ( after maybe 1 - 2 years ) and hold. Not a particularly peculiar case right?

    All over that like a rash. Thankfully we are quiet at work so utilising that time hugely.

    I am getting sick of following up to be honest Jamie. I have been working with this broker for well over a year now trying to put things together. They did my PPOR and have looked at a good few options with me including trying to find finance before I became a resident here. I was on a 457. I feel the need to be loyal due to the amount of failed attempts we have looked at and the amount of time I have used with only one deal actually going through but on the flip side I am keen to get the ball rolling. Am I being a spoiled brat or sensible?
     
  8. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,161
    Location:
    Canberra and Sydney
    Fair enough - might not be a good fit. If you're not getting the service you deserve then see if you can do better somewhere else.
     
  9. ellejay

    ellejay Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,131
    Location:
    Kimberley and NZ
    I'd either just contact them and ask for a timescale, or just look for someone else. I've wasted a lot of time waiting for brokers to come back to me. My case is a little more complicated but not overly. I don't know why people can't just say if they're too busy, or better still I'm busy but have you tried approaching x lender on your own? I've finally found a couple of people who seem like they can be bothered and will know more in the next couple of days. It was hard work and so annoying though, lesson learned.
     
    Last edited: 9th Feb, 2016
  10. tobe

    tobe Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    897
    Location:
    Melbourne
    I'd disagree about the uk property. You do need to disclose it. It likely won't help your application however.
     
    Redom likes this.
  11. albanga

    albanga Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,118
    Location:
    Melbourne
    I am a massive believer in the squeaky wheel gets the oil. If I want something done fast I hammer my vendors at work.

    I apply this theory outside of work too. Yeah sure I may be considered a "pain in the a.." But at the end of the day i would rather be that than a "nice guy" that people put to the bottom of the pile.
    .
     
  12. Santaslayer

    Santaslayer Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    74
    Location:
    Sydney
    If you feel like this person is hindrance to your end goal then I would change to someone who is a better fit. No point trying to be nice here if you have given them all the chances in the world.
     
  13. Paterson00

    Paterson00 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    193
    Location:
    Perth WA
    Why would it be a hinderance to my application? It makes great money so is an asset to me and assists servicing.
     
  14. tobe

    tobe Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    897
    Location:
    Melbourne
    some lenders wont use overseas income, but they will take into account any overseas debt. The lenders that do use the income buffer the exchange rate (on both the rental income and the debt repayments), as well as only using 80% of the gross rental.
     
    Last edited: 10th Feb, 2016
  15. Paterson00

    Paterson00 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    193
    Location:
    Perth WA
    Thanks all. Still no word from the broker so got in touch with Bank West directly today. I have chatted with them and been told that they will happily lend me the money I need at 90% LVR on a complete fixed home loan at 4.29% on an investment. I am happy with that. I expected to pay 5.2% so that makes a huge difference.
     
  16. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,161
    Location:
    Canberra and Sydney
    Just take caution here - BWA aren't a good lender for investors (poor cashout policy/servicing calculator) so if you intend on releasing equity against this property in the future - then I wouldn't be taking out a 90% lend with them. They have cheap rates.....but that's pretty much it.

    Cheers

    Jamie
     
  17. Paterson00

    Paterson00 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    193
    Location:
    Perth WA
    I'd be fixing for three years and hope that the lvr would go below 80% in that time. If it did then moving to another lender would get me away from lmi wouldn't it? Therefore switching to a better lender in the future would be cheap?

    I would like to cash out for further deposits in the future. I do intend to expand.
     
  18. tobe

    tobe Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    897
    Location:
    Melbourne
    If you are intending fixing for 3 years, why are you enticed by bw variable rate? Better to go for a lender with better cash out policy's and fix with them.
     
    York likes this.
  19. Paterson00

    Paterson00 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    193
    Location:
    Perth WA
    Did i miss something? Fixed for three years means it won't change right? Not variable?
     
  20. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,161
    Location:
    Canberra and Sydney
    Then best not to lock yourself into a fixed rate with Bankwest for three years.

    Cheers

    Jamie