Browse Forums Real Estate Re: Questions for first home buyer 8Sep 06, 2009 11:06 pm Briz Ms idealist 4) Is "subject to finance" a common condition? I asked this because one of my friends listed this as a condition on his offer and he got a call from the agent asking exactly how much the bank is willing to finance him. Isn't that confidential? My friend mentioned that he has already got loan pre-approval however the agent was persistent in asking more questions. Was the agent justified in asking these questions? Or should my friend have left out "subject to finance" on his offer? Also, you do not have to disclose how much finance you are approved for, nor should you!!! The reasoning behind the agent asking this question is not for them to find out how much the bank will finance them in total, but to find out how much they will be borrowing for the property. Agents are the link between the purchaser and the contracts being made up by the solicitors. For example, if you were buying a house for $300,000 and had $40,000 saved for a deposit, once the banks have added all the other expenses (stamp duty, land tax, solicitors etc) you will find your loan is not for $260,000 it might be for $280,000. Your contract would then read something like subject to finance from: xx bank, by:xx/xx/xx for an amount no less than $280,000. If you don't tell the agent the amount then if your bank only agrees to lend you $250,000 you are still bound by the finance clause in the contract because technically your finance has been approved. Hope that makes sense! Not much in this responce. My suggestion is, what are you looking to build and why. This will all be impacted by the local councils planning scheme. Familiarise yourself… 6 5871 Hi Suku18 In NSW the statutory required insurances are: 1. HBCF ( Home Building Compensation Fund) - This is if the builder dies or goes broke. But this only covers 20%… 1 2714 So it looks like we finally have some movement on site! Definitely later than expected, but I'll take any progress at this point. I'll drop by over the weekend to get… 5 27738 |