Some of you may have experienced this, or know people whom have. Banks will issue a pre-approval, and without having the proper understanding of what this means, many people have been burned!
Going to an auction or exchanging contracts on a property without ensuring that your approval is actually valid, is a very dangerous proposition, one that could cost you tens of thousands of dollars, if you were to sign a property contract, only to realise that your pre-approval is not worth the paper it’s written on!
At Bee Finance Savvy, we work closely with you, and guide you, to ensure you do not exchange a contract without having a proper approval in place. This can mean getting into minor battles with the banks, and going through management channels to ensure that your loan application has been FULLY ASSESSED.
You will likely see approvals that have a number of bullet points under the conditions section. This allows the bank to withdraw its approval, should it not be satisfied with any of your circumstances, which it has not fully looked into.
Some examples include:
- Income that has not been properly assessed – your loan application may state you earn a particular amount, but the bank’s rules may mean they determine your earnings to be quite a different figure. This particularly affects those whom are self employed, or those whom have multiple jobs, or bonuses and over-time.
- Properties that the bank does not find desirable. This could include something obvious like a power pole overhanging the property, or something less obvious, such as the bank’s view on the property’s postcode.
This is why it is vital that your loan application is fully assessed, rather than just relying on a computer generated pre-approval, which has not had any of the information checks performed.
If mortgage insurance is required, it is also vital that the insurers have seen your application before you exchange contracts on a property.
At Bee Finance Savvy we press the banks to provide real approvals to our customers, so that they cannot rely on any loopholes which could enable them to pull out of their approval.
To ensure that your loan approval is solid, contact Bee Finance Savvy on 1300 140 554.
You may also enjoy the following – Your-conveyancers-perspective