Pre-approval question

Discussion in 'Loans & Mortgage Brokers' started by Melbourne_guy, 5th Jun, 2020.

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  1. Melbourne_guy

    Melbourne_guy Well-Known Member

    Joined:
    4th Aug, 2019
    Posts:
    499
    Location:
    Melbourne
    I'm mildly interested in an apartment as a PPOR that is up for auction in about 4 weeks. The REA guide price indicates they are looking for Feb 20 and pre-COVID-19 prices and in this current environment, I am not going to go there but could do something at the bottom end of the guide price if there was little interest in it. Having a decent deposit and secure employment (as far as it ever can be) I'm not expecting issues obtaining a mortgage or loan.

    To those more knowledgeable than I in such matters
    A. Should I apply for pre-approval now even although it is by no means certain if I will proceed?
    B. Will the pre-approval application have any negative impact upon my credit rating?

    As background info, last year I allowed two pre-approvals lapse with U-Bank. The first time I just missed a property and second time around, nothing of interest arose and since then, I haven't been interested looking.
     
    Last edited: 5th Jun, 2020
  2. Terry_w

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

    Joined:
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    Australia wide
    1. It will depend on how strong a borrower you would be. Safer to get a pre-app with auctions.
    2. Not really, but you wouldn't want too many credit hits
     
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    15th Aug, 2005
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    Location:
    Gold Coast
    If the lvr is below 80 %, a dead enquiry on on your file usually wont hurt you.

    Having said that, youd want to make sure the property is suitable security, and get a current copy of the borrowers credit file

    ta

    rolf
     
  4. Melbourne_guy

    Melbourne_guy Well-Known Member

    Joined:
    4th Aug, 2019
    Posts:
    499
    Location:
    Melbourne
    Thanks fpr the responses.
    The LVR isn't an issue because I have a very decent deposit but finding the right apartment property for a PPOR is the difficult part. What will retain my interest in this current property is if I receive previous from the REA, the Owners Corporation AGM Minutes going back a few more years that report minimal damage of the building and reasonable maintenance costs. Not sure I'll receive them but I'll be patient.