Browse Forums Home Finance 1 Feb 24, 2010 1:54 pm We received noticed that titles to our block will be issued soon, and land settlement will occur within the next 2 weeks. At the moment we already have formal loan approval for the land, but our broker advised us to re-submit another application this time for land + construction as a single loan. Therefore we now have to ask for an extension to the land settlement date as it'll take longer than 2 weeks to have this new loan application to be processed. Anyways, my question is regarding this 48-hour clause in the extention request form (see below). My understanding is that as we do not own and are not selling any existing property this clause will not effect us...is that correct? The clause says: If the Contract is subject to sale of any other property and any extension is requested the following 48 hr clause will apply: If, before the buyer accepts an offer on their property, the Seller receives another offer to purchase the Property: a) the Seller may accept that offer provided the Seller first serves notice in writing on the Buyer of the Seller's intent to accept that offer; and b) providing the Buyer has not waived any of the conditions as to finance approval or sale of the Buyer's existing property within 2 business days of receiving notice from the Seller, The seller shall be entitled to rescind this Contract and upon the Seller's repaying to the Buyer the Deposit and any other money paid to the Seller without deduction, this contract shall be at an end. The seller may exercise its rights under this 48 hr clause at any time prior to this contract becoming unconditional. 12 March 2010 - Land titles received 3 April 2010 - Signed building contract 14 April 2010 - Prestart 28 April 2010 - Loan approved 30 June 2010 - Slab completed 27 August 2010 - Brickwork completed 22 September 2010 - Roofing completed 30 September 2010 - Internal walls plastered 12 October 2010 - Lock Up 19 November 2010 - PCI 26 November 2010 - Handover 29 December 2010 - Moved In https://forum.homeone.com.au/viewtopic.php?f=31&t=32584 Re: need advice on settlement extention form 2Feb 25, 2010 5:31 pm Allanna, I am unaware unfortunately of the clause you are seeking clarification. I am curious however as to who the lender is you were dealing with? There shouldnt be any reason (for most lenders) why you cant have the full approval for land on one split of the loan and have a conditional approval on a second portion of the lending for the construction. Im interested to know. Possibly I can provide some insight depending on the lender for you. Regards, Trent Davidson Property Finance Consultant Residential Lending LJ Hooker Finance Brisbane North Credit Representative Number: 387283 under Australian Credit Licence:380270 Re: need advice on settlement extention form 3Feb 26, 2010 2:36 pm Hi Trent, sorry its abit complicated. we're getting our loans with suncorp via a mortgage broker. i suppose we can get full approval for the land (which we already have) and apply separately for the construction part, but our broker wanted us to re-apply for land+construction as a single loan application because: a) we just became a single income couple due to commencement of (unpaid) maternity leave b) we already have "pre-approval" for the land+construction loan, when we were still on double income. As our pre-approval for combine amount is valid till mid March, our broker believes that if we put in for formal approval now for the combined total loan the bank would not ask for additional income slips. However, if we now asked for construction loan as second portion, they bank will require income slips and there may be a risk we might not get this construction loan approved due to insufficient income. 12 March 2010 - Land titles received 3 April 2010 - Signed building contract 14 April 2010 - Prestart 28 April 2010 - Loan approved 30 June 2010 - Slab completed 27 August 2010 - Brickwork completed 22 September 2010 - Roofing completed 30 September 2010 - Internal walls plastered 12 October 2010 - Lock Up 19 November 2010 - PCI 26 November 2010 - Handover 29 December 2010 - Moved In https://forum.homeone.com.au/viewtopic.php?f=31&t=32584 Re: need advice on settlement extention form 4Feb 26, 2010 3:31 pm Hi Allanna, Have you got a fixed price building contract at current? If you have a fixed price building contract why not just submit this and have the existing preapproval moved forward. If by chance you do not have a fixed price contract to build as yet then the lending cannot be 'unconditionally' approved regardless. Only the land portion would be able to. From your notes you suggest that you have a formal approval for land at the moment (on its own). AS WELL as a second application which is a preapproval for land & construction (together). Or did you have a preapproval for land and construction whereby the land was fully approved with the construction is still a preapproval? If this is the case then you should be able to get the construction portion formally approved if you have the building contract well within 2 weeks. If you have a preapproval for land and construction at current why is the broker not moving this forward towards full approval? Because, from your comments in essence relodging an application for land and construction would be the same as moving the current preapproval forward. Using the existing file would make the whole process a lot quicker. It is unclear to me why the finance would be 'relodged' with Suncorp if the preapproval is already in place. Starting the process right from the beginning with a 'new' application would delay the process and increase the chances of them asking for updated payslips. Hope this helps. Regards, Trent Davidson Property Finance Consultant Residential Lending LJ Hooker Finance Brisbane North Credit Representative Number: 387283 under Australian Credit Licence:380270 Re: need advice on settlement extention form 5Feb 26, 2010 4:46 pm Allanna, I have done some digging for you. (I am an Ex Suncorp Lender and wanted to clarify what I was sure of). You will almost ALWAYS have new payslips requested with suncorp when converting a preapproval to a full approval. So, if by chance the payslips they have on file are within 4 weeks of the request to convert the preapproval to full approval you are fine. If they are outside of this. They will in 99% of cases request updated payslips. Both the lender (being the person that the broker deals with) and the credit officer (if the application needs to go to credit) verify the 'Minimum Document Requirements'. The payslips being part of this. The only way around this is if the lender sends the loan application to credit and asks for an exception to the rule (say for instance your payslip is within 6 weeks then it may still be acceptable). 9 times out of 10 the credit officer will want to see updated payslips. IF the deal is relodged with Suncorp and they ask for payslips and these cannot be provided. And it is found that you are on Maternity leave. It is possible for Suncorp to remove the formal approval for the land as well as decline the new application. I suggest being very careful here as I assume you already have an unconditional contract for the land. So if this is to fall through you may lose your land deposit as well as penalty interest for breach of contract. It may be worth discussing the option of settling the land now and sitting on the land until the incomes return to normal. Or. If you have a large deposit you are using towards the land/construct. Reduce the deposit being used towards the land/construction. And have your broker build a story around the extra funds (difference in deposit) being used to cover loan repayments while on maternity leave. This will usually need to be accompanied by a letter from your employer confirming a return to work date and income amount. Or. If you are eligible for centrelink parenting payment now that you are on maternity leave (Family Tax Benefit part A and B and parenting payment etc) then you may be able to have your servicibility calculated using your partners income plus the new centrelink benefits etc. If this is ok. Then you may be able to get the formal approval for the construction using this AFTER the land settles. So that the land does not need to be redecisioned. I would suggest exploring all of these options. As a brokerage we would not recommend the covering up or misrepresentation of income or living arrangements, nor do we condone such acts. It is recommended to explore all options available. If you have any further questions I suggest it best if you Private Message me for more specific info Allanna. Just be careful with the approach being taken. Another consideration is that with the reduced income are you still in a position to be able to comfortably cover rent for the construction period as well as the new loan repayments? Hope this is helpful. Regards, Trent Davidson Property Finance Consultant Residential Lending LJ Hooker Finance Brisbane North Credit Representative Number: 387283 under Australian Credit Licence:380270 Re: need advice on settlement extention form 6Mar 01, 2010 12:52 pm Hi Trent, thank you so much for all that info and advice, really appreciate it. From your notes you suggest that you have a formal approval for land at the moment (on its own). AS WELL as a second application which is a preapproval for land & construction (together). Yes that is correct. If you have a preapproval for land and construction at current why is the broker not moving this forward towards full approval? Because, from your comments in essence relodging an application for land and construction would be the same as moving the current preapproval forward. Using the existing file would make the whole process a lot quicker. Yes i believe our broker will be moving our pre-approval to formal. Sorry i didnt make this clear earlier. My concern is still about the payslips requirements. Our pre-approval (for entire loan) was applied in mid December and will expire mid March, so if we push to formal approval now would Suncorp still ask for updated/recent payslips? IF the deal is relodged with Suncorp and they ask for payslips and these cannot be provided. And it is found that you are on Maternity leave. It is possible for Suncorp to remove the formal approval for the land as well as decline the new application. This is really really worrying. Our broker seems to be sure that if we pushed for formal before the pre-approval expires, the bank wouldnt ask for further payslips and that we'll be fine, as they wont know about the maternity thing. Another consideration is that with the reduced income are you still in a position to be able to comfortably cover rent for the construction period as well as the new loan repayments? Yes we are. We're currently boarding rent free with my brother, and we have enough savings to be comfortable on single income for the duration of the maternity leave. 12 March 2010 - Land titles received 3 April 2010 - Signed building contract 14 April 2010 - Prestart 28 April 2010 - Loan approved 30 June 2010 - Slab completed 27 August 2010 - Brickwork completed 22 September 2010 - Roofing completed 30 September 2010 - Internal walls plastered 12 October 2010 - Lock Up 19 November 2010 - PCI 26 November 2010 - Handover 29 December 2010 - Moved In https://forum.homeone.com.au/viewtopic.php?f=31&t=32584 Re: need advice on settlement extention form 7Mar 01, 2010 1:23 pm From your notes you suggest that you have a formal approval for land at the moment (on its own). AS WELL as a second application which is a preapproval for land & construction (together). Yes that is correct. It may be prudent just to ask your broker to 'run your scenario' by another lender other than suncorp. Someone with lighter servicing. Just as a back up plan. If you have a preapproval for land and construction at current why is the broker not moving this forward towards full approval? Because, from your comments in essence relodging an application for land and construction would be the same as moving the current preapproval forward. Using the existing file would make the whole process a lot quicker. Yes i believe our broker will be moving our pre-approval to formal. Sorry i didnt make this clear earlier. My concern is still about the payslips requirements. Our pre-approval (for entire loan) was applied in mid December and will expire mid March, so if we push to formal approval now would Suncorp still ask for updated/recent payslips? My understanding and experience is that Suncorp will ask for the new payslips. Your broker will most likely need to request upfront when moving the preapproval forward that they wish to have the requirement of updated payslips waived/signed off by credit. This will obviously have to be supported with reasons why they cannot be supplied etc......... Credit would decide if they will accept this or not. It may be possible to get a letter from your employer stating your annual wage, length of employment, role etc. to confirm your income 'potential' to submit with moving the approval forward. (dated within the last month) IF the deal is relodged with Suncorp and they ask for payslips and these cannot be provided. And it is found that you are on Maternity leave. It is possible for Suncorp to remove the formal approval for the land as well as decline the new application. This is really really worrying. Our broker seems to be sure that if we pushed for formal before the pre-approval expires, the bank wouldnt ask for further payslips and that we'll be fine, as they wont know about the maternity thing. Im sure your broker is keeping all of these things in mind. Mat leave doesnt just mean a reduction in income but also the addition of a dependant which further reduces the servicing. Check to see what your 'servicing' does look like if your entire situation is taken into consideration. Ie. plus 1 dependant, minus your income, plus parenting payment etc. with the savings factored in that you have as well. It may still work with Suncorp or another lender. Another consideration is that with the reduced income are you still in a position to be able to comfortably cover rent for the construction period as well as the new loan repayments? Yes we are. We're currently boarding rent free with my brother, and we have enough savings to be comfortable on single income for the duration of the maternity leave. This is helpful info to be living with your brother rent free. Suncorp will actually still apply a 'minimum expense' even if you are living rent free. That will mean further strain on servicing. Other lenders will use the 'zero' cost rather than loading the minimum on. The point Im making is that you may not need to panic and there may be other options for you with other lenders even if Suncorp does not work out. I am of the belief that it is better for a client to know the the options and the possible problems before they become issues. Luckily enough this is what these forums are good for. Sharing of info. Hope it helps. Trent Davidson Property Finance Consultant Residential Lending LJ Hooker Finance Brisbane North Credit Representative Number: 387283 under Australian Credit Licence:380270 Re: need advice on settlement extention form 8Mar 29, 2010 1:03 pm Update: We've settled on the block last week, as it was the best we could do with our situation. We're now hoping to get a construction loan, but if all fails then we'll just have to wait till I resume work again in 3mths time before applying for the construction loan. Was just bad timing that bub decided to come out earlier than expected, but no regrets on that! Anyway, had a few questions in mind: a) would it help if my employer was able to provide a letter stating when they expected me to resume work again, and with the same salary? b) how long after I resume work before we can apply for the other loan? Out of curiosity, assuming all other finance situations are healthy, would the banks still turn down loan applications even if the person was on fully PAID (at normal pay level) maternity leave? 12 March 2010 - Land titles received 3 April 2010 - Signed building contract 14 April 2010 - Prestart 28 April 2010 - Loan approved 30 June 2010 - Slab completed 27 August 2010 - Brickwork completed 22 September 2010 - Roofing completed 30 September 2010 - Internal walls plastered 12 October 2010 - Lock Up 19 November 2010 - PCI 26 November 2010 - Handover 29 December 2010 - Moved In https://forum.homeone.com.au/viewtopic.php?f=31&t=32584 Re: need advice on settlement extention form 9Mar 29, 2010 1:14 pm Hi Allana, Your best chance is to get a letter stating when you WILL be returning to work. It is important how it is worded as it needs to clearly state when you will be starting back to work. Not when you may be starting to work or you are allowed to start back to work. This is a bit of wordplay here. And as per all written documents open to alteration by writing between you and your employer at a later date. However, the lender needs some certainty. IF you are on fully paid maternity leave and will be returning to work prior to the paid maternity leave running out then have this put in the letter also. This is almost as good as working right through. There may still be some apprehension however due to you having the right to stay on maternity leave if you choose. You may be able to apply for the construction lending now while on maternity leave if you have the letters and dates to prove etc. As a back up, also calculate what your benefits would be allowed to be through centrelinks website. https://secure.centrelink.gov.au/RateEs ... inName=FAO Suncorp can use Family Tax Benefit Part A and B and parenting payment in their policy. If you are elligible for these should your paid maternity leave run out before returning to work. See if the construction loan is affordable with your partners income plus these benefits. You may be able to get the construction loan approved anyway. Hope this helps. Regards, Trent Davidson Property Finance Consultant Residential Lending LJ Hooker Finance Brisbane North Credit Representative Number: 387283 under Australian Credit Licence:380270 Re: need advice on settlement extention form 10Apr 12, 2010 12:11 pm We've just signed our building contracts and I've managed to get my employer to backdate my maternity leave and have used the last 5 weeks of leave as annual leave (good thing I had accumulated that amount of leave). So they've now re-issued payslips with Annual Leave instead.....but we have to apply for the loan ASAP as this Thursday's payslip onwards WILL SHOW maternity. Anyways, our initial Suncorp pre-appoval for construction expired a month ago and the letter stated we need to submit another application after that date. But when I submitted copies of our signed contracts to the broker, he said he'll send to suncorp "to see what they say". That was last Wednesday. When I asked about the progress this morning, he said he hasnt received further instructions for updated payslips etc from them yet or whether to resubmit new application. Then he says we may not get the loan with Suncorp as we're relying on my husbands income only...and might need to go to another lender as suncorp wouldnt approve our loan amount based on single income what? I asked him what about my income as well? (no reply from him yet). Hyphothetically, IF we submitted for a loan application directly at any bank TODAY with our payslips to date, it should just be a pretty straightforward application right? (i.e. normal income, not on maternity leave) Why wouldn't the banks accept BOTH our income/payslips? I feel that our broker has either forgotten about our situation and urgency, and if he delays any longer and asks us to re-apply again after this week my pay will show maternity already and that will jeapordise our chances of getting the loan! Sorry for the rant I just dont know what else to do. 12 March 2010 - Land titles received 3 April 2010 - Signed building contract 14 April 2010 - Prestart 28 April 2010 - Loan approved 30 June 2010 - Slab completed 27 August 2010 - Brickwork completed 22 September 2010 - Roofing completed 30 September 2010 - Internal walls plastered 12 October 2010 - Lock Up 19 November 2010 - PCI 26 November 2010 - Handover 29 December 2010 - Moved In https://forum.homeone.com.au/viewtopic.php?f=31&t=32584 Re: need advice on settlement extention form 11Apr 12, 2010 12:20 pm The broker may be referring to the amount of lending you have being too high to validate using just your partners income. If the broker HAS already disclosed to the lender that you are going on Maternity leave then he cannot go back and use annual leave payslips. As they are already aware etc. As you said before however, your land has settled already and Im assuming that is with Suncorp. To go to another lender would mean refinancing the land as well as doing the construction. You may get approvals fairly quickly.. But the lender will not start providing funds for construction until the land is refinanced.. may take up to a month depending. If this is the only way to go you may be 'better off' using a broker to assist. As they have liason officers/Busines development managers at the new lender you are going to as well as Suncorp to try and 'speed' things up. If you go direct to a lender to do this refinance and construction they will lodge the discharge authority with Suncorp and just have to wait until it gets processed. Your broker should be able to ring and speak with their BDM to get more information regarding your application however. Your welcome to private message me if you would like some more specific advice regarding your situation. As I can only provide generalised advice in an open forum. Regards, Trent Davidson Property Finance Consultant Residential Lending LJ Hooker Finance Brisbane North Credit Representative Number: 387283 under Australian Credit Licence:380270 Re: need advice on settlement extention form 12Apr 12, 2010 3:22 pm Thanks again for your kind advice Trent. No I dont think he has disclosed to Suncorp yet about the maternity leave thing....and we haven't submitted any of those "maternity" payslips to them yet....so technically the bank doesnt know it. Which is why I didnt understand why he said such a thing. I can only hope he knows what he's doing. 12 March 2010 - Land titles received 3 April 2010 - Signed building contract 14 April 2010 - Prestart 28 April 2010 - Loan approved 30 June 2010 - Slab completed 27 August 2010 - Brickwork completed 22 September 2010 - Roofing completed 30 September 2010 - Internal walls plastered 12 October 2010 - Lock Up 19 November 2010 - PCI 26 November 2010 - Handover 29 December 2010 - Moved In https://forum.homeone.com.au/viewtopic.php?f=31&t=32584 Re: need advice on settlement extention form 13May 18, 2010 11:13 pm aLLaNNa1 Thanks again for your kind advice Trent. No I dont think he has disclosed to Suncorp yet about the maternity leave thing....and we haven't submitted any of those "maternity" payslips to them yet....so technically the bank doesnt know it. Which is why I didnt understand why he said such a thing. I can only hope he knows what he's doing. Wow! I'm glad to see that I'm no the only one getting stressed out with the whole loan process! I really need some help from someone... anyone!!! I received full approval on a Construction Loan back in November 2009. I have signed a land contract with a Real Estate Agent (he's working for the Vendor) and then went and signed a building contract with a builder. I went through a Broker who got me approved for a Construction Loan with one of the major banks, however this is soon to expire (in the next couple of days). The Loan Offer was valid for 180 days from the Offer Date. And it states in the paperwork that the first drawing must be made within 180 days from this offer date or the bank withdraws the offer. The only reason I haven't yet drawn against the loan is because I am still waiting for the land to title. When I first deposited on the land the expected title release date was Feb/Mar 2010. This was later confirmed to be mid March (between my solicitor and the Vendor's solicitor). But this date came and went with no titles. Then at the end of March I requested a letter from the Vendor stating that the delays were unforeseen and out of my control. I needed this to give to the SRO together with my application for extension on the Boost grant payment (to receive the Boost grant you must commence construction within 26 weeks from signing the building contract, and I have gone over this 26 period already). The Vendor gave me this letter, dated 6th April 2010, and in it he wrote "As at the time of writing we still do not have titles office release, however we do expect this to be forthcoming within the next two to three weeks." So this made me believe the land would title somewhere between 20th-27th April. My solicitor also spoke with the Vendor's solicitor towards then end of March and confirmed titles to be released late April. But this date also came and went with no titles. I called the agent on 20th April and the latest estimate that he gave me was mid-late May (although he did say this was a "guess-ti-mation"!!! ) So I really don't have a set date of when the land will title. The land looks finished, and has been finished for a few weeks already. My solicitor called the Vendor's solicitor again on 5th May and he wouldn't even committ to a date this time. He just said it could be anytime within the next month! I am so sick of being messed around. At least if they were honest I could prepare things accordingly. But the thing I need help with is this... When the loan was first approved and I noticed in the paperwork it stated that the offer was only valid for 180 days, I questioned my Broker about this. She said, "It's nothing to worry about. If we get to the time and you haven't drawn on the loan, it's not a big deal, we'll just get an extension." So I accepted that. But as we neared closer to the 180 days expiring I asked her again. She gave me the same answer again. And then I asked her that if we do need to apply for an extension, do we do that now (ie. a month before it's due to expire) or do we wait until just before it expires? She said to leave it right until the last days. Well, we're at the last days now, and I have chased her up about it, and she said to me in an email that the bank can approve the extension, but need a settlement date to extend it to. Ie. They cannot extend indefinately. That made sense, but I do not have a settlement date, and this is out of my control. So I asked her if a letter from the Vendor stating that the delays are not my fault and were unforeseen etc, with an estimated settlement date, would this help with the bank accepting the extension application? She said not to worry, she will get my solicitor to give her a letter with an estimated settlement date. So I was fine with that, until a few days later when I emailed her to follow up on whether she had organised this letter from my solicitor and had she forwarded it to the bank yet, and have they given formal extension approval. Then she turned around and said something along the lines of "Yes, I have given them the letter from your solicitor. Now we just have to wait and hope they approve it. If they dont, we're in really big trouble, as then we will have to start the application process all over again. I couldn't believe it. She had said to me so many times that getting an extension would be no problem, and nothing to worry about. Even one week ago she said in her email that she has spoken with the bank, and they CAN approve it, they just need a settlement date. So why is she appearing to turn it all around now??? I'm hoping so badly that she's not trying to sting me for another fee. Surely she wouldn't be that cruel, would she? So, under my circumstances, does anyone know what is the "norm" in this situation? When a loan is formally approved, is an extension of time on that loan offer really such a big deal? Why would they reject it? No other circumstances have changed. The only reason it has been held up is because the land titles haven't been released as yet. I do expect this to occur within the next 4 weeks, but that's only me guessing! Hopefully it'll be sooner, but I really don't know. The agent is now away on holidays, so I can't speak to him. Maybe I need to chase up the Vendor's solicitor myself??? Please can someone give me some advice or help. Thanking you in advance. aldavies3. I couldn't attached the photo for some reason. Here is the link to the photo https://pin.it/79jwdMp 1 3237 Levelling compound Ardit is the best but buy a bag of sand and make sand dam to protect your wood floor 2 15404 XCEM Alpha flooring seems to relatively new and I could not found any reviews. Have you or someone you know have used it and would recommend over other subfloor options?… 2 7736 |