Query mortgage broker advice

Discussion in 'Loans & Mortgage Brokers' started by AdelaideLong87, 13th Jun, 2020.

Join Australia's most dynamic and respected property investment community
  1. AdelaideLong87

    AdelaideLong87 New Member

    Joined:
    8th Jun, 2020
    Posts:
    4
    Location:
    Adelaide
    Hi all,
    A free standing house (block size 450sqm) I am seriously interested in is taking offers and I have decided to make an offer by submitting a "notice of offer to purchase residential land" form.
    I have consulted my mortgage broker and she has crunched the numbers and said financing won't be problem, make the offer and if it gets accepted then she will send me the paper work for the financing.
    My questions are:
    1. I intend to make the offer subject to financing and a building inspection. Should I also include subject to bank valuation too, in case the bank valuation falls through so I don't lose my deposit?
    2. I've heard people get pre-app for finance, should I be seeking same with my mortgage broker for peace of mind? She seems fine with leaving it to when the bid gets accepted?
    3. Should I be doing anything else to mitigate any other risks associated with this?
    Thanks
     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,599
    Location:
    Gold Coast (Australia Wide)
    [QUOTE="AdelaideLong87, post: 889598, member: 27182"e:
    1. I intend to make the offer subject to financing and a building inspection. Should I also include subject to bank valuation too, in case the bank valuation falls through so I don't lose my deposit?
    2. I've heard people get pre-app for finance, should I be seeking same with my mortgage broker for peace of mind? She seems fine with leaving it to when the bid gets accepted?
    3. Should I be doing anything else to mitigate any other risks associated with this?
    Thanks[/QUOTE]


    Generally, if the val is short the loan will be declined or forced into lmi. In your subject to clause suggest you put max Loan to value ratio of ........perhaps seek advice from your legal counsel,more of a legal than finance q

    What is the Loan to valuation ratio ?

    ta
    rolf
     
  3. Terry_w

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

    Joined:
    18th Jun, 2015
    Posts:
    41,672
    Location:
    Australia wide
    1. that is a question for your lawyer.
    2. depends how strong you are, timelines and chances you won't go ahead
    3. yes - seeking legal advice before making offers in writing.
     

Build Passive Income WITHOUT Dropping $15K On Buyers Agents Each Time! Helping People Achieve PASSIVE INCOME Using Our Unique Data-Driven System, So You Can Confidently Buy Top 5% Growth & Cashflow Property, Anywhere In Australia