two weeks to settlement - freaking out

Discussion in 'Loans & Mortgage Brokers' started by starfish_99, 1st Mar, 2020.

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  1. starfish_99

    starfish_99 Well-Known Member

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    Our broker initial applied with NAB, it took them 10 days to tell us no (wife missed a single optus bill in 2015). So upon the broker's recommendation we applied with just me to NAB again (PAYG employee, 250k+ income), then I find out that NAB's processing times are often 2-3 weeks.

    Now, applying at St George, 90% LVR(even if you consider LMI). They are expected to provide unconditional approval Monday, but doesn't it take more time after that for valuation, etc?

    Is there any chance in hell we'll make settlement in two weeks?
    The property is an inner-city house in a desirable suburb
     
  2. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    Hi starfish
    Is there a reason valuation wasn't done upfront? Lender won't sign off without the full valuation especially at that LVR.
    2 weeks is very tight, unless it was 80% there would be quicker options.
    Also, St George may also have longer turnaround times, with their new refinance rebate.
     
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  3. Morgs

    Morgs Well-Known Member Business Member

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    Have you applied with St George already? Or is the application going in on Monday? For most brokers they are at 12 business days as well.
     
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  4. starfish_99

    starfish_99 Well-Known Member

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    it's being assessed on Monday my broker says. it was put in last Wednesday.
     
  5. Lindsay_W

    Lindsay_W Well-Known Member

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    This is important @starfish_99 - you need to find out if your broker ordered the valuation upfront or not, if not why not, because the lender will certainly need it before giving unconditional approval.
     
  6. Skinman

    Skinman Well-Known Member

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    Not sure what state your buying in but assuming it’s Victoria.

    I believe you have a couple of options.

    1. Get your solicitor to ask the other party for an extension of a few days without penalty until it’s sorted.

    2. Extend the settlement and pay whatever penalty rates apply...if it’s only a week or so it shouldn’t be too much (refer to your solicitor / contract for details)

    Unless you got it for an absolute steal and the market has moved significantly since you signed the contracts it’s unlikely the vendor will pull the plug on the sale.

    You really should be getting this advice from your solicitor/ conveyancer...that’s what you are paying them for.

    Good luck I’m sure you will be fine.
     
  7. starfish_99

    starfish_99 Well-Known Member

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    Is a valuation always required? we went off of the CoreLogic property report our bank gave us after pre-approval. Then decided to go with a broker because our bank's rates and service was terrible. This was an auction with high demand so we had to move fast.
     
  8. starfish_99

    starfish_99 Well-Known Member

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    PS our broker never mentioned a thing about valuation. So I assumed the CoreLogic report would be enough.
     
  9. Lindsay_W

    Lindsay_W Well-Known Member

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    A Valuation is always required yes, although some lenders do allow the Contract of Sale to be used (based on their own desktop valuation of the property) generally at 90% LVR though you would require a full valuation (where someone actually goes and inspects the property)
    Simply ask your broker if they've ordered the valuation or not.
    Corelogic property reports are generally not bank valuations unless it's that specific lenders Desktop valuation which can pull data from Corelogic. You can't just take a corelogic valuation report to a lender, they need to be satisfied with their own val, whether that's desktop or full val.
     
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  10. starfish_99

    starfish_99 Well-Known Member

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    Hearing this for the first time, I'm kinda upset that my current broker never mentioned ordering a valuation, even given that BoM/StG do it free.

    Oh well, I should just make it. I'm actually very low risk, yeah LVR at 90% but I have zero personal debt (cancelled all my credit cards a year ago, after dutifully paying them off) and evidence of real savings. Property is in the high-demand inner north, and was bought at auction.
     
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  11. Lindsay_W

    Lindsay_W Well-Known Member

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    Maybe they already ordered the val? I would still just ask them the question to see what's happening with it
    2 weeks is tight but do-able as long as it is actually picked up on Monday for assessment.
    Once the loan is approved, loan offer docs need to be provided, broker can ask them to be escalated due to the short time frame to settlement, get docs completed and returned asap so the lender can verify and book settlement.
    Broker kinda needs to be all over the lender to ensure it's escalated again when docs are returned for verification
     
  12. Archaon

    Archaon Well-Known Member

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    First mac were able to get me unconditional finance in 5 business through my broker, not sure if you are able to choose anyone else at this stage, sounds like your credit score is getting annihilated.
     
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  13. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    Being assessed on Monday doesn't mean approval on Monday, if there are questions / clarifications required.
     
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  14. Terry_w

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

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    I wouldn't be freaking out just yet, but would be starting to worry. Begin to come up with back up plans just Inn case.

    What state is the property located in?
     
  15. starfish_99

    starfish_99 Well-Known Member

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    VIC, and by backup plans, do you mean applying at faster lenders? I hate how shopping around for financial products, as any good consumer should do, completely trashes your credit score.

    It's been an absolute farce with this broker, several key things were overlooked in the applications that cumulatively caused this to go from a pretty standard timeframes running down to the wire here..
     
  16. starfish_99

    starfish_99 Well-Known Member

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    Yep, it is :( and I behave very well with my personal finances.
     
  17. Terry_w

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

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    What will you do if the bank says no?

    You might have another 2 weeks up your sleeve, but check with your lawyer tomorrow.
     
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  18. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member

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    a single default 5 years ago rarely kills a deal.

    NAB and STG are 2 last lenders I would go ot if I wanted a reliable outcome, in a timely manner

    ta
    rolf
     
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  19. starfish_99

    starfish_99 Well-Known Member

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    ANZ, BoM, and NAB have all basically implied that my wife is dodgy for that little oversight and they'd never lend to us with a jointly-owned home. She's a schoolteacher on 50k who's even had a credit card.

    I'm on 250k, no debt, no defaults. I thought this would be seamless. I just feel insulted every single bank I've dealt with.

    Which banks or lenders would you recommend? There isn't a single Aussie bank i've not at one point in my life thrown a hissy fit at lol.

    One would THINK that a decent broker would now that reliable lenders...
     
  20. Morgs

    Morgs Well-Known Member Business Member

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    What happened with BOM? St George is essentially BOM.....