ok, we went to aussie last monday and they said we could get a certain amount of money but they were sending the stuff through to the bank for pre approval. anyway, hadnt heard from them so my DH just called today and she said that there is some more information they need, it has gone 'unconditional' that there isnt a problem and that they will get back to us by wednesday. for some reason he didnt ask what that all meant. so does anyone here know what it means?
they never mentioned that they need to ask US any more info so what info do they need and where will they get it from if they dont need to ask us?
she also mentioned something about needing to do a valuation or something? what the?
i suppose i will have to ring her myself if i cant figure it out. bloody men!
The valation will apply if you are getting the loan to buy an established house.
Before they loan you X amount of money, they need to be sure that the property is in fact worth about that to begin with. It is not in their interests to have an asset that is worth less than the value of the loan, if the loan is foreclosed and the bank has to sell the property to recoup the loan.
When you first get 'pre-approval' it is usually 'conditional'. Being that theoretically you can manage the loan and you are able to meet the minimum requirements. When the application is actually processed they are obliged to check things like confirming employment with your workplace, checking your credit rating, the property, how many dependents you have, what your exact income is etc...When they are satisfied that you can service the loan and arent a bad risk, they will give what is called unconditional approval. From the sounds of it, you have been approved, but they are waiting on final information before making a final decision. They could be waiting on information from Centrelink, or the ATO, or the valuation itself could be holding things up.
Your best bet is to call back Aussie. They will be happy to explain all this to you
thanks limeslice! that makes a lot of sense. (i am so clueless in regards to all of this) :-)
the thing is though, when we applied for the loan we didnt have a property in mind. so how can they do a valuation on something that we hadnt even told them about yet?
If you haven't chosen a property yet then it will just be checks on all your background information - as limeslice stated.
We got pre-approval before we started building - so we knew what to look for and what to budget for. You will have to go through a similar ring roll again when you do find a house. That will be the property valuation etc.
Hi, we use Aussie and the main problem we've found with them is that it can take weeks for them to request all the info that the bank you've chosen needs to determine how much they will lend you. We've used them 3 times and the last time we had the Aussie rep come out and tell us how much we could borrow and then applied for "pre approval" when the pre approval came back it was over $200,000 less than what Aussie had said we could borrow. We had to pay for 3 valuations as we already owned property that they had to value before they could approve the loan. Everytime we thought we'd given them everything they needed they would ring asking for something else. It's quite frustrating. The other thing to watch is that just because you get "pre approval" if the bank isn't happy with the valuation of the property your buying they may not approve the loan so when you put an offer in on a house you like, make sure that the contract is subject to finance, pest & building inspections, so that you can pull out if something happens with the bank.
yeah, the bank came back saying we could get 20 grand less than aussie said. very annoying. so what sort of things would make the bank not happy with a certain property?
what does this mean?
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