The Finance Approval Minefield
by Shannyn Hunter
Conveyancer shannyn@lawyersconveyancing.com.au
Lawyers Conveyancing
Anyone who has dealt with the banks for a home loan will tell you about their battle scars with pride. Simply securing finance approval can be a frustrating and baffling task. An anxious purchaser can be kept waiting for finance approval because the valuation has been delayed, the vendor has gone overseas, the valuation has been done but your documents are being processed, your broker is on leave, your call is important to us…
It is best to ensure that the finance condition in the contract allows ample time to secure finance approval, because the unexpected happens.
With the right information, the naive purchaser can arm themselves against the common mistakes people make when buying a home and securing finance.
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2 Comments
Is it true that the smaller guys like wizard, bendigo etc have thier approval process faster & easier than the big banks? If so why so many of us are with these big banks.
Hello Rav,
I do know that the smaller banks can offer a great rate but clients who use them seem to have more hassles in terms of satisfying their requirements so that they are ready to settle. And again it is a matter of pre-approval being very different to unconditional approval. Pre-approval may be quick but the bank is not locked in.
The smaller banks also tend to outsource their settlements to law firms which adds another layer of people to deal with – the link at the end of the article to ‘Bully Banks Cost Battlers Millions’ is about the unnecessary certificates these law firms require to be paid by the client.
https://www.reic.com.au/blogs/australian_real_estate_blog/archive/2007/04/30/bully-banks-cost-battlers-millions.aspx
That said, a lot also depends on the purchaser; the bank they choose, if they have read all of the documents, complete and return documents quickly, understand the amounts involved, if they have enough savings for a deposit and later on to pay stamp duty and registration fees at settlement – not all loans include this, and if they have an experienced broker or banker. If the purchaser does all of these things they will find the process a lot easier.