All Topics / Finance / Technicalities of contracts for getting a home loan
- casanovawaParticipant@casanovawaJoin Date: 2010Post Count: 63
This will be a bit more unusual than some requests on here… I have applied for a home loan but am not finance approved as yet. The lending institution has been stuffing me around giving me final approval on on the loan over some stupid credit card issue. But all other requirements for the loan i have met.
As the whole process has been stringing out longer and longer i have been hearing more and more sobering news about the real estate market, RBA (and banks) putting up interest rates multiple times over the next year/house prices falling especially in WA.
Its gotten to the point that i think I want to pull out of the loan and look again in about 6-12 months. I have put a $1000 depoist on a block that they have been extending my period to get loan approval/settlement for several months now. I also paid a $750 deposit with the home builder to get the plans drawn up (which is not refundable) but signed all the contracts obviously to go to the lending institution to enable them to assess the house and land for finance approval.
The deposit on the block is refundable due to finance approval and the house contracts are also depend on finance approval. What i am wanting to know is if i call up the lending institution and say i want to can my application do u think that would end the process and i would get land deposit back and home builder would just void all plans, or do i have to actually be rejected by lender and if i ask them to stop process i will be liable to costs and loss of deposits etc???TerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
What is the wording of the finance clause?
They may insist on proof that your finance was rejected. If you hadn't listed the lender they may ask you to go elsewhere to try for finance. Or they may just accept a verbal communication from you saying you couldn't get finance. It all depends on the wording and how strict the other party is.
Also make sure if you tell the bank you want to can the loan – will they give you a rejection letter.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.auLinarMember@linarJoin Date: 2004Post Count: 567
I would imagine that if you stopped "helping" the bank by refusing to try to sort out the credit card issue, they would eventually reject your finance application. It depends on why the bank is not yet approving the loan, but if they bank is waiting on you to do something about the credit card, then just don't do it.
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