Browse Forums Home Finance 1 Mar 11, 2015 8:30 pm I'm a first home buyer in Victoria and have a question (I'm a newbie at this, so apologies if this seems a silly question). I'm going with a house and land package, and have put a deposit on a lot that is to be titled in June 2015, and have signed the land contract. At my conveyancer's advice, the contract states the settlement to be 21 days after registration (the developer initially wanted 14). That's all fine. However, there is also a bit in the contract about 'loan approval date', which the developer insists he can only put down a date that is a maximum of 21 days after signing (this puts the approval date sometime in late March). I do have pre-approval, though I gather from other threads this doesn't mean much. I've now started the financing process with my bank for unconditional approval, and my bank now tells me they can only do final approval after the land is titled and they do a valuation. But I'm confused about what to do now? What will happen past the loan approval date in the contract if the bank is still waiting on title to be able to give approval? Thanks in advance. Re: Question about home loan and untitled land 2Mar 11, 2015 8:57 pm What will happen is a rush! I have land lots here in NSW with unconditional approval that are not yet registered and titled. It could be your bank - or it could be a peculiar VIC titling thing, Tom should respond - he's based in VIC. In my mind if it has an identifier, even as party of a greater lot, it can be approved - what's on the contract in terms of a lot number? Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Question about home loan and untitled land 3Mar 11, 2015 9:42 pm Thanks for that. I guess I was concerned of what ramifications there my be if I don't have approval by the approval date in the contract. There is a sentence which says contract is subject to loan being approved. But nothing I can see in the contract that says what happens if not approved by the approval date. And yes, I do have a lot number in the contract. Re: Question about home loan and untitled land 4Mar 11, 2015 9:44 pm your solicitor will want you to have an approval by that date or rescind the contract - or explain the repercussions in regards your deposit of you don't get finance in time to settle. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Yeah I don't know why I came to a forum. Place is full of wierdos/pedos thought internet may help but I suppose I'll try my luck with someone in person. Cheers. I tried… 0 6791 The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 19880 Hi, you've probably already resolved this, however, Commbank will probably pay the funds to you after you send evidence the work is done regardless the change in the quotes. 1 36000 |