Verbal offer before pre-approval?

Hi all,

We submitted an application for a pre-approval about 4 weeks ago. As you are aware banks have significant backlogs.

We thought we would start looking around but found a place we like. Normally I wouldn't as it seems risky but should I put in a verbal offer as the real estate agent says there has been an offer.

Your thoughts are appreciated

 

The banks are slow at the moment but 4 weeks for pre-approval is too long, which lender was that?

A verbal offer isn't really going to put you in a position of a risk. Risk would be if you submitted a signed contract of sale with an offer.

 

Hi - with CBA.

Thank you for the information.

 

No worries- did you go with banker or broker for the pre-approval? I would suggest get in contact with them ASAP to find out what is happening because you should've heard back by now and had some feedback around additional information required at the very least.

 

CBA Processing times are at 8 business days for simple applications, 10 if complex, however if it's a 'Homeseeker' application (sounds like it is, that's their name for pre-approvals) then you need to add an additional 14 business days to that time frame so could take up to 5 weeks to get assessed.

If your broker/banker has confirmed your borrowing capacity I would suggest you could still make an offer on the property you've found, I would make the contract subject to finance though.

 

I went with a broker. They had contact and needed additional/updated information last Saturday.

Then on Thursday it got denied! My broker contacted them to find out there the only reason was a missing statement! So they reassessed it... good news is I just heard back yesterday and got my pre-approval!

Thanks again for the information

 

I was also refinancing as well so abit more complicated i guess. But it's all good now.

Thank you for your time in responding and the information.