Bit of a finance question…
Does anyone know what stage of the application employment checks are done by the banks when applying for a loan?
Reason being that a loan application of mine was submitted yesterday (with both myself and my girlfriend as joint applicants).
My girlfriend has just been offered another job today, and is going to hand in her 2 week resignation on Monday.
The data for finance approval is 3 weeks from now, so that leaves 1 week that she won’t be at the company on the application – and also – when contacted – the chance of the company she’s with now saying she will be leaving in 2 weeks:(
I’ve spoken to my broker and he said that this would void that application as she has to be employed by the same company for more than 3 months.
cheers
wayne
No problem..
1. The banks are now generally too lazy to do proper background checks and property valuations.
2. You can always get a low doc from one of the fine lenders on this website.hehhe
Seriously, you do have a problem. No real way of getting around it, maybe an external guarantor, but that’s too burdensome and banks don’t like them for home loans anyway. Maybe your loan is too big if you need the bank to recognise two incomes?
Anyway, good luck
In my experience when I have gone for finance, once you put in your application, you get to a conditional approval stage the bank is satisfied with all the documents and representations you have made on your application. No doubt you would have provided pay slips or letters confirming employment. In 4 finance applications for IP’s, the banks have never actually called my employer. They have taklen the evidence ie pay slips and/or letters from my employer as sufficient. Conditional approval (and the MB’s here will correct me if I am wrong) is effectively subject to satisfactory valuation.
I think technically you are supposed to let the bank know of a change of anything material in your application, but you could avoid telling the bank this fact if you have gotten to this point.
Otherwise, your broker is right re the 3 months or at least your girlfriend getting past her probation period. Of course, unless your g-friend has negotiated no probationary period.
It differs between banks and even within banks. SOme do not do checks at all, others ring a portion of employers to check.
Generally it is done first up, but you never know. If I was her, I would not hand in my notice until I get full approval in writing.
Which bank is she with?
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Agree with all of above. Maybe is she could hang out until to resign until the actual “notice” will cover her until approval is complete. After that you will be fine.
And well done on getting that preoperty the other day Wayne.
J.
cheers jparson:)
Thanks all for your replies… Lisa (girlfriend) has spoken to her HR department so they are going to let her know if they banks ring up… and they said they wouldn’t mention her resignation unless they are asked:)
Yes, I’m already going guarantor for the loan as both my current IPs are used for collateral…so yes, hopefully as I’m already guarantor – they will focus more on my details:)
cheers
wayne
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