Pull out a pre-approval application

Discussion in 'Loans & Mortgage Brokers' started by Mark, 16th Jul, 2017.

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  1. Mark

    Mark Well-Known Member

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    A friend just submitted a CBA loan pre-approval application through a broker. The application has not been picked up by the bank. She has changed her mind and decided to pull out the application. Is it possible for her broker to withdraw the application before the bank picks it up to avoid a credit hit?
     
    Mark, 16th Jul, 2017
    #1
  2. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Once an application is submitted electronically - the lender does a veda/credit check so its too late to avoid the credit enquiry. As such it may be worthwhile proceeding with the application.

    What is the reason she wants to pull out of the application?
     
    Shahin_Afarin, 16th Jul, 2017
    #2
  3. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Hi there

    Pretty sure it's too late. Banks automate this stuff.

    Cheers

    Jamie
     
    Jamie Moore, 16th Jul, 2017
    #3
  4. Mark

    Mark Well-Known Member

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    Thanks Shahin and Jamie. She wanted to pull out equity out from another property first before buying another property
     
    Mark, 16th Jul, 2017
    #4
  5. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    It's only going to be an issue if she's done this a lot - if she's got a pretty clean file it's unlikely to cause any issues.
     
    Jess Peletier, 16th Jul, 2017
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  6. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    If the other property is financed with CBA she can change the structure of the application.

    If the property is not with CBA then proceed with the pre approval and declare the additional equity amount once it goes through.

    Most lenders (with the exception of a couple) will want to know what the equity release is for and if its for the purchase of another property they generally want to see you have submitted an application for the subsequent purchase.
     
    Shahin_Afarin, 16th Jul, 2017
    #6