Hello, I have received a loan offer from CBA for a construction loan. The offer states that the loan application has been approved however loan conditions are: -Statement verification of assets -Statement verification of debts Can anyone explain to me what these conditions mean? Thanks in advance.
They want to check you have the assets you claimed in your application and they want to see what debt levels you have before they lend you anymore money.
They want to see bank/loan statements that back up your assets and liabilities you stated in the application
Thanks for the replies. It was my understanding they checked our credit files for any undisclosed debts prior to getting to this point in the application process. Is this not correct? Also I had already provided all statements for my assets early on during the application. The application is a little complicated as the property is being gifted to us & we are completing a knockdown/rebuild. We are not yet owners so this may be the verification of assets part. I believe I'm also required to have a current loan discharged prior to being approved unconditionally so this may explain the verification of debts however I thought this would have been a specific condition.
Is it an approval letter your looking at or the actual loan contract? CBA approval letters are standard and all have the same wording. It’s likely a ‘pre offer” letter. That usually means there’s a condition left on the approval. This can be something very basic, like updating pricing approvals, gift letters, etc. At the moment, CBA credit are quite overloaded and approving more loans first time with more conditions. Process wise, this allows their doc pre team (less busy) to finalise approvals without it going back to credit. This may mean something, because we’re seeing a few more of these letters of late with a bit more conditions than usual (like updated payslips, etc). Short answer, ask your broker or banker this question, they’ll know the exact answer specific to you.
Conclusion ........... Dont stress, it will be fine within the next 24 to 48 hrs when they do the docs and issue the formal. ta rolf
the 3rd party side ( broker side) of CBA is pretty rigorsous with the front end It would be very very very unusual to get a credit assessed approval, and have some thing credit critical fall off later. There may be a request to lower or cancel a card limit etc before docs are issued, but given the minute grain assessment, you wont get a pre offer letter if there is anything weird left to assess ta rolf