Browse Forums Home Finance 1 Dec 22, 2008 2:31 pm Hello,
I would like to know how much is a bank pre-approval worth? I mean I was given this in writing on request and I then went ahead as told by my bank to find a house and I did. Now I have everything in place with my solicitors etc. Now I'm just waiting for my bank to give the official approval on my income for the loan so we can get inspections & sign the contract. I'm self employed and have given the bank my accounts for last 2 years. business is only profitable for last 18 months though. I'm a little nervous waiting now for nearly two weeks on a small loan and waiting for a phone call anytime now, actually I was meant to get one today. I have around 60% deposit including FHOG. How much chance do you think there is of them approving this loan officially? enjoy your life! Re: Bank Pre-Approval Questions 2Dec 22, 2008 2:53 pm [quote="monsoon" I have around 70% deposit including FHOG. How much chance do you think there is of them approving this loan officially?[/quote]
With that kind of deposit I cannot imagine you having any problems at all. Look at it this way if you default on the loan the bank will still get all of its money back. Re: Bank Pre-Approval Questions 3Dec 22, 2008 4:58 pm my bank pre-approval meant that everything is done except for a simple land valuation, all the credit history and work records had already been checked at this stage and the approval lasts for a year.
this is with cba, so maybe different banks use the term differently? it took around 4 days to go from pre-approval to unconditional (today!) Blog - http://snakedr.blogspot.com/ Build Thread - viewtopic.php?f=31&t=12084&p=307406#p307406 Status - PCI 15/10. Things nearly done. Re: Bank Pre-Approval Questions 4Dec 22, 2008 5:22 pm Zerosignal With that kind of deposit I cannot imagine you having any problems at all. Look at it this way if you default on the loan the bank will still get all of its money back. That's what I thought too. I wrote 70% deposit but after calculating it is 60% but still quite a lot and the price is not much either. Quote: it took around 4 days to go from pre-approval to unconditional (today!) I wonder if I'm refused this loan from my bank then what options do I have left? Should I try a firm like Aussie Home loans etc? enjoy your life! Re: Bank Pre-Approval Questions 5Dec 22, 2008 5:32 pm Here’s a bank I could shoot at the moment……………
Talk about muck us around… Like ⋅ Add a comment ⋅ Pin to Ideaboard ⋅ Good luck monsoon, I know your grief! Internal and External Building and Colour Consultant Online - Worldwide http://www.denovoconcepts.com Re: Bank Pre-Approval Questions 6Dec 22, 2008 7:16 pm I used mortgage choice to give us our options and do all the hard yards, which he's done well and we have unconditional a day before it was due
but our previous attempt at finance a year ago was also through mortgage choice and that guy was ****, its not easy to sign your life away and give a bank lots of cash.... Blog - http://snakedr.blogspot.com/ Build Thread - viewtopic.php?f=31&t=12084&p=307406#p307406 Status - PCI 15/10. Things nearly done. Re: Bank Pre-Approval Questions 7Dec 22, 2008 7:38 pm I should be able to pay back my loan within 1 year or less but I might go with a 2 year loan just for that extra room in case. I hope the bank will give some flexibility for quick payment.
Well I think I will call them again if I don't hear back my tommorow afternoon. The rep is probably a bit tired of me calling but I'm also tired of promised phone calls that never come. enjoy your life! Re: Bank Pre-Approval Questions 8Dec 22, 2008 10:29 pm nothing worse than broken promises, i wont rant, but its more likely what you will get than good service these days, makes the good people stand out even more Blog - http://snakedr.blogspot.com/ Build Thread - viewtopic.php?f=31&t=12084&p=307406#p307406 Status - PCI 15/10. Things nearly done. home loan pre approval, first time home buyers 9Dec 23, 2008 10:22 am billdsl my bank pre-approval meant that everything is done except for a simple land valuation, all the credit history and work records had already been checked at this stage and the approval lasts for a year. this is with cba, so maybe different banks use the term differently? it took around 4 days to go from pre-approval to unconditional (today!) spot on!, there are not only different terms used by different lenders but they also mean very different things. some banks even use the term pre approval for what may not even be considered to be a pre-qualification. One of the major bank branch lending staff just fill the stated income (without checking payslips for accurate figures) into the servicing calculator and say "Congratulations, your home loan is pre approved". They then hand over a letter that has disclaimers that cover 1/3 the page. Now that is not a pre approval that you can use for any worthwhile purpose. Re: Bank Pre-Approval Questions 10Dec 23, 2008 10:39 am Yes I think the pre approval means very little.
I herd from the bank and the big surge in loans from the lower interest rate means my loan won't be processed to after Christmas and i missed out by one day. Well at least I know where I stand. One question I still hope to get some answers on is if my loan is declined what are my options, would I still have a chance of getting a loan from another lender, maybe a non bank like Aussie etc? enjoy your life! sydney home loans, first time home buyer 11Dec 23, 2008 11:10 am monsoon Yes I think the pre approval means very little. I herd from the bank and the big surge in loans from the lower interest rate means my loan won't be processed to after Christmas and i missed out by one day. Well at least I know where I stand. One question I still hope to get some answers on is if my loan is declined what are my options, would I still have a chance of getting a loan from another lender, maybe a non bank like Aussie etc? i dont know which bank you went to so i cant see how they issued a pre approval without confirming your income first. of course you can go to another bank or non bank lender for your home loan. these days you will have a tough time with turn arounds as lenders are flat out. I know 2 major banks have turn around times of 2 weeks +. you will also have a difficult time with solicitors as they take 3-4 weeks off. i can't comment on aussie as they are a broker group as well as a non bank lender. if i can give you one tip, don't go from one bank to the next if you are declined first. you will be penalised for applying in quick succession as well as a number of times in any given CRAA cycle. what you need is a knowledgeable and qualified broker to work out a strategy for you. Re: Bank Pre-Approval Questions 12Dec 23, 2008 12:20 pm thanks thlo, sounds like some good advice and I now have a better understanding. I do feel positive with my bank granting the loan (westpac) as I have a good savings history, squeeky clean credit rating and a high income. My only downfall is that I have only been profiting for 18 months in my business. enjoy your life! Re: Bank Pre-Approval Questions 13Dec 24, 2008 12:30 am monsoon thanks thlo, sounds like some good advice and I now have a better understanding. I do feel positive with my bank granting the loan (westpac) as I have a good savings history, squeeky clean credit rating and a high income. My only downfall is that I have only been profiting for 18 months in my business. monsoon, many receive advice, few profit by it. i was afraid you were going to say westpac, they are way out of their normal service levels. In fact, applications submitted up to 19 December are expected to be assessed by the 27 January. i hope you have that much time on your side. How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan? 5 11916 1 2988 Hi Minho I have heaps of experience in Ku-ring-gai with both DAs and CDC ( this is the main area we build in). DA's are taking 12-18months and CDC's we have been doing… 1 3162 |