Loan for OTP apartment

Hello everybody,

My OTP apartment is getting close to completion and the developer says the completion date will be on August. The settlement notice is 2 weeks which is quite short so, what is the best time to apply for a loan pre-approval. I'm going to use a broker in Melbourne for that.

 

Where in Melbourne? If it's the CBD you best be sitting.

 

start now by talking to a broker. i'd be lodging soon

 

I'd generally suggest about 60 days prior to the expected settlement date.

That should be plenty of time to get the loan approved prior to settlement, but also close enough that the approval won't expire if the settlement is delayed by a month or two (which is quite common).

 

Thank you very much for quick advice.

 

I normally start work on OTP deals around 60-90 days out from settlement (depending on the lender).

I like to get to the point where everything is approved pending the final valuation.

Cheers

Jamie

 

Especially given we are coming upto the end of the Financial Year and no lender needs an excuse to slow down their processing.

 

If the property is in the CBD or Docklands I would get some advice ASAP, you may find that the valuation comes in lower than the purchase price. You would want to work out some contingencies if this happens.

 

Thanks Simon for advice. Fortunately it is not in CBD or Docklands but I will contact a broker for loan approval soon