by Tim O’Dwyer M.A., LL.B
This latest “Clayton’s” finance approval letter is hot off my fax machine.
Last year I reported on an upbeat broker’s keenness to show me that my clients’ finance had been “approved” – by way of a copy of a letter from the lending bank confirming that the loan application had been “Unconditionally Approved.” (see: Clayton’s Finance Approval (The Approval You Have When You Don’t Have Approval)).
Responsible conveyancing solicitors warn their buyer clients not to get too excited about such Clayton’s approvals, and to hold off on notifying finance approval to their sellers until they see all the lender’s terms and conditions – and are satisfied with the total deal.
Hot from my office fax machine, is a recent and not very different Clayton’s finance approval letter headed “Unconditionally Approved”. Needless to say, my clients will be advised not to make their purchase contract “unconditional” as to finance until they receive, consider and accept the lender’s “formal offer” with “ALL the terms and conditions of the loan”. Follow the link to read the letter advising “Unconditionally Approved”.