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?
It could be the location, recent property price trends in that area, any proposals from the council for years ahead, or simply the evaluation.
You will need to take the current climate into consideration too now.
The other thing is that they may use different figures to work out how well you can service the loan.
Aussie may use only your previous Tax return, the bank may use it plus your current payslips and multiply it out to see what you will earn for the next year....Your employment status (full time, perm part time, self-emnployed) may also impact how much they will lend.
Like I said earlier though, if the property simply isnt worth the extra $20K or they dont think it will be in years to come, then they wont give it to you, it doesn't make financial sense for them.
You can though call the bank and speak with them and ask if there is anything you can do to try to get the extra $20K.
With the loan approval on the property we're living in now, the bank sent out their property valuer and he valued the property at $220,000. We had offered & had accepted an offer of $218,000 so the bank approved the loan but we found out through the real estate agent that the owners had originally been refusing to accept less than $235,000 but all the other offers had fallen through as the banks weren't approving the loans because they were paying more than the property was worth and with property prices falling the bank needs to be able to sell the house for more than you've borrowed in order to make it viable for them to lend you the money incase you default on the loan.
what does this mean?
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