Thank you!
Not dead yet.
Lo there do I see my father.
Lo there do I see my mother and my sisters and my brothers.
Lo there do I see the line of my people back to the beginning.
Lo they do call to me, they bid me take my place among them.
In the halls of Valhalla.
Where the brave may live forever.Thank you all for the information in these postings. They have all been very helpful and informative.
Les[
]What I’m concerned about is this.
– The bank will want to inspect the place at some point to decide whether or not to loan you the cash to buy the place.
– The bank might say no.
– The contract goes unconditional two weeks after exchange.
– If the bank says no, and the time it says no is not within the two weeks, then clearly this would be a fairly major problem. You’ve signed your name to a legally binding contract to buy a house, and you have no immediate finance to do so.
This is why I asked if the bank inspects within the two week period.
Not dead yet.
Lo there do I see my father.
Lo there do I see my mother and my sisters and my brothers.
Lo there do I see the line of my people back to the beginning.
Lo they do call to me, they bid me take my place among them.
In the halls of Valhalla.
Where the brave may live forever.Sorry, can’t help with the banks inspection. In ACT we don’t sign contracts until finance is in place, and all inspections done, so have never had ‘cooling off’ period.
Cheers
Melput in as many conditions that will allow, and what about extendions? always reseach and ask questions[blink]
PenguinJr,
Great post. Excellent information here thanks to all the contributors, will ensure I keep this one for future refernce.
Matt
Whoops, we’ve been doing wrong way around all this time!?
We have
1. Found property
2. Made offer
3. If accepted then go find finance.We’ve done this 3 times and am currently doing again right now. I hope we get approval!!
BUT how do you apply for finance from bank when they want to know what the property address is? Seems like chicken and egg stuff to me.
Improve your nordic skiing – become an accredited instructor with http://www.apsi.net.au/nordic
1) Decide on your investment goals.
Then per the order submitted by other posters….with the following added every five items:
Check that you are aware of and still aiming towards your investment goals.
The only thing worse than missing a great deal is getting a great deal that takes you further away from your investment goals!
Cheers,
Aceyducey
In theory, there is no difference between theory and practice. But, in practice, there is.– Jan L.A. van de Snepscheut
Hi All,
One VERY IMPORTANT thing that all the posts seem to have overlooked is that YOU MUST arrange at the very minimum BUILDING INSURANCE on the property you are buying which takes effect on the day of settlement. [ohno]
The lending institute would not be very happy if the day you took possesion your new property accidentally burnt to the ground…[angry2] anf you were not insured.
Cheers, Barry
Informal pre-approval takes like a half-hour from your Bank, and you can work out yourself whether you can afford the place. If it’s a 70% LVR, then do you have a 30% deposit (plus legals), either in equity or cash? If you have an existing portfolio, just add up your values (based upon most recent valuations, NOT most recent sales, unless you want to get another reval), and work it out in your head. Of course, one’s head means nothing to a bank manager
But it should take only 1 day to get proper pre-approval.I never sign a contract until I have had all the checks done. I do receive offer and acceptance though, and discuss gazumping with the RE agent. Generally, when I make an offer, I let the agent know I am sincere. The agent and vendor usually prefer a sincere offer over one where buyers are signing multiple contracts. I build a relationship with the agent, and the verbal contract is enough.
The valuer will inspect the property after you’ve made the written application for finance, but before you actually get it (they’re not gonna give you finance if your place isn’t worth the loan). I also do any other checks before I sign the contract. Sure, it’s a bit of a delay for the vendor, but I don’t want to be rushed and have everything to do in 5 days of the cooling off period. Others will differ in their approach to this. My 5-day cooling off period (or 3 in some states) is, for me, a relaxing time that I just wait for it to be over, so I own the property.
I also make sure I don’t formally apply for a loan unless I feel 100% certain about the purchase. Each time you apply for a loan, it goes onto your credit record. You don’t want too many of these, as they can be questioned by the Bank, and cause problems with future loans.
kay henry
Originally posted by nordicskier:BUT how do you apply for finance from bank when they want to know what the property address is? Seems like chicken and egg stuff to me.
Hi Skier,
Without going back and rereading all comments in this thread – the suggestion to get finance first – is more about knowing how much the bank will lend you in general terms without necessarily geeting to the stage of actually applying for the money.
Barry,
In some states it is required to get insurance once you have signed the contract.
Irrespective of whether or not you have to have insurance you now have an interest in the property and for the sake of a small portion of your annual insurance bill would not want to be left uncovered at any stage of the purchasing process.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Barry, I think you’ll find that if you’ve got a mortgage for your property purchase, the bank will require a copy of the insurance PRIOR to giving you any money anyway.
Cheers
MelThanks every one I have just joined the site and a total newbie. It is great
finding such an abundance of info, sooo helpful.
Attmepting to absorb it all, and swing into action next year. Feeling somewhat daunted and excited and relieved that there is such a forum.Jazpo
Is using mortgage broker a must in Oz? Apart from the convenience of (maybe) getting the best selection of mortgage lender and saving time, is that the only reason we use a mortgage broker?
I’m sorry, I’m new and not yet very familiar with the Oz system.
GK
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