Newhere - Conditional Approval given - then not

Hi guys,

looking for a little bit of guidance here.

in a nutshell:

I received conditional approval (document received) with the condition of Valuation and Fixed priced building contract.

The following day - I receive a call saying that they now want further information and that my loan is no longer conditionally approved.

What are my options?

Did they explain why it is no longer conditionally approved - did the approval expire perhaps?

We had a similar thing happen to us in that the time it's taken since we got conditional approval when we bought the land to now building that our approval has lapsed and we had to give the bank all the same documents again but this time it's for a final approval.

They might just want the documentation because its all systems based and the computer doesn't know. Maybe the valuations were done and came in under? Maybe they found a black mark on your record.

Without clarification from the bank it's hard to assess what your options are.

after the conditional approval was given - within 24 hours they called back and said they wanted tax returns for a business im no longer a director for (have not be a director for about 5 months)?

we have not used any income from the business for servicing what so ever - both my wife and myself are both PAYG

From what I can gather, they would have seen your credit file and it would have listed your directorship on it. From that they would assume that you are a shareholder in the business and therefore would like to know about the business financials (for all the lender knows the business could be losing money but it hasn't been declared and will affect servicing).

Cheers

Tom

Hey whyw8
Love/Hate pre approvals …

It bizarre to request tax returns after the fact , Or did the lender just do a ‘ thumbs up’ without submitting the application to the banks credit ?

Are you get a loan with Mortage Insurance ?
MI are very tough at the moment , and their average two years of wages (if you earnt $70k in your own business and are now on $120k with Paye wages . Your income to service the debt would be $95k ) .
Best of luck
Cheers


Stig

We had the same issue of conditional approval being renegged on by the bank. In the end it all got sorted, but we had a rant through the bank's complaint system, and had our $695 loan establishment fees refunded, as they clearly missed a step in their processes.

Lucky it ended up getting sorted as the conditional approval granted initially triggered the settlement terms for our land. The bank claimed that even if the land settlement went through and if they chose to not provide the loan, it was our fault in the end for informing the settlement agent of the conditional loan approval, and we would be required to pay the full $305k land cost with no lending available. We were extremely disappointed in being told this, with our broker refusing to provide any advice or options.

Both hubby and I run separate businesses as sole directors, so it can get a bit more complicated. You just need to make sure you have full confirmation that you no longer have any association with the company, and check your name has been removed.