Loan Pre-approval - inpact on credit rating

Terry, so do lender raises queries to broker for all access for certain past months....If they are being selective then they might miss access which was denied....

 

Sometimes they ask, sometimes they don't. Sometimes they ask obvious questions other times they don't ask when they should.

 

Why do you think Gold Coast? I am trying to build on the Gold Coast. 80% LVR. Will this be a problem with finance?

 

Was it an 80% LVR? I recently had the same experience with a construction loan with NAB. Went for 80%, however they offered to my former broker 70%LVR. Had to do with their new risk assessment policy or whatever, where they class certain postcodes as category A or B and they would only do a 70%LVR on cat A postcodes. Unfortunately for me, my postcode was cat A, although the suburb was not one of the listed as cat A.
Cheers,

Alina

 

No - done plenty of high LVR loans up that way.

Hit up @Rolf Latham - he's a finance guru and is located up in the GC.

Cheers

Jamie

 

All of my funds and borrowing limits etc were well within the requirements - the broker did the affordability calcs on 7.5%, and I had over 30% deposit. This all happened much earlier this year, before the new limits were introduced.

Even the broker was left gob-smacked by the whole experience............

 

I'm not a fan of doing pre-approvals unless there are exceptional or tight circumstances around the purchase. No need for a credit file hit for the sake of it, especially for someone who is building a portfolio and may have multiple loan apps/top ups happening in a short-ish period of time.

Did this, by chance, happen when the APRA changes rolled through NAB? Was your pre-approval in place before the APRA changes, but offer was made and accepted after the changes?

My last purchase was a bit tight because NAB had provided pre-approval which gave me 90 days to make a purchase and be assessed on the pre-APRA calculators, which we also had confirmed in writing, then the purchase came along and they reneged on their word so there was a bit of a battle to get the deal through. The only reason a pre-approval was obtained was to open that 90 day window..

It also didn't help that their valuer thought the property would rent for $400/week when in fact I got $565/week.

 

Application was put in during late December 2014, with pre-approval given in early January 2015 and the purchase was made mid-March 2015.

 

Thanks Jamie ! It's complicated. .... Cheers!

 

Just wondering, what would happen if you did not put subject to finance or got the IP through auction. Could be an absolute nightmare

 

Thank you for sharing @The Y-man I recently missed a property which tick all the boxes due to my inexperience. Still somehow hoping if I could get another go, lesson learned.

 

Is that 21 days reasonably standard? That is, if you put in an offer on a property subject to finance, it will take the bank (assume that you already have pre-approval from the bank) 21 days to absolutely confirm funding approval?

 

Thanks Rolf.

 

Suggests that when you are putting in offers ‘subject to finance’, you should ask for at least 10 days from the vendor to confirm finance (assuming you already have pre approval). And if you don’t have the approval letter at the 10 day point, but are close, you ask for an extension from the vendor of another few days.

 

Can’t imagine the vendor was happy with a conditional contract that lasted 6 weeks? I suppose it depends on how hot the market is, and what you are prepared to accept!