Hi, i m buying the propety that is around 90% finished, completion date is around end of july. my brokers says we can get conditional loan and get pre valuation done, but i don't know if its right way to go, i thought i should be getting unconditional loan if i am right.
my cooling off period will expire on 2nd July 13, (10 days period)
so far i only put .25% deposit, my question is,
1. Is there enough time for me to get my loan approved before 2nd july?
2. Can i use conditional loan to purchase the property? has anyone purchased property like that before?
3. if i pay 10% deposit on the day cooling off period expires, how risky it is?
4. Can i apply loan from 2 different banks? Will this affect me in future if i need to refinance loan?
5. Can i still ask for more than 10 days extension in cooling off period? if so what do i need to tell the vendor?
Thank you.
1. Is there enough time for me to get my loan approved before 2nd july?
Depends on how complexity and situation + the chosen lender
2. Can i use conditional loan to purchase the property? has anyone purchased property like that before?
I'm presuming your mean a conditional pre-approval?? if so…yes you can.
3. if i pay 10% deposit on the day cooling off period expires, how risky it is?
Without finance approval- very risky.
4. Can i apply loan from 2 different banks? Will this affect me in future if i need to refinance loan?
If your situation calls for that then yes…it's best you don't as it will affect your current approval BUT if you must you can, but make sure the 2 banks uses different LMI insurers i be cautions of multiple credit hits..meaning if you have a lot of hits on your file already then i would avoid applying for multiple approval, instead it may work better to apply for a 2nd valuation rather then approval ( depending on your complexity)
5. Can i still ask for more than 10 days extension in cooling off period? if so what do i need to tell the vendor?
Yes you can. very common- Tell the vendor the truth- you need more time for finance approval. Request this via your lawyers.
Thank you.
Good luck
Regards
Michael
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
If it's 90% complete you might be able to obtain a formal approval – it will come down to the valuation (which I'd have your broker order upfront if he/she can).
Just had a deal approved for a forum client purchasing an OTP property in Melbourne that's at about the same stage as yours in terms of completion.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thank you guys for your help, that's some great advice.
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