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Why would this condition take so long to approve or deny?
Hi guys, a first home buyer here. Through my mortgage broker I was conditional approved for a loan, we found a place and moved on the signed contract of sale (a requirement of the condition oddly enough). All requirements were approved (valuation etc) pretty much 24 hours, except one where the bank had to sort the gauraontor amount from my inlaws. Their house valuation is fine and approved, house is paid off except however they've kept $2000 in their offset (or something I don't really understand to be honest) and this requires our bank to speak to their bank and organise a remortgage for the amount required. We were told it would be 24-48 hours, that was 9 days ago and the days before settlement are closing in on us. Mortgage broker said he's helpless as its up to the banks, banks say I have to go through the MB for any updates and I'm sitting here quite anxious about what's going on. Nobody can give us even a status update (is it with our bank or inlaws?) I'm considering just going for a loan with someone else but concerned I'll fall into the same problem. Is there a way to escalate this beyond my broker calling his BDM who doesn't seem to care either way? 9 days is well beyond the quoted 2! Very precarious position ...
Thanks!
Responses
Fabian. Hi from what you have mentioned it appears you are either waiting for a discharge and refinance of the guarantors property or perhaps a consent to a second mortgage. Your mortgage Broker should be able to inform you which it is. You have not mentioned the Lenders involved, but my experience is that either of these can take 10-15 days. I would never have suggested 48 hours.
I could not advise you on any alternate options without knowing a lot more information for yourself and your guarantor. The best thing I can suggest is that your Guarantor phone their bank and try to speed things along.
If this was all started at the contract signing stage, and you have a standard six week contract then you may be OK with the required time.
Check with your Solicitor / Conveyancer and keep them informed. They will be able to advise on the implications of going overtime on your settlement.
Good luck with it all
Ken Olds
Customers First Mortgages & Insurance
1300 ASK KEN
Thank's for the quick response Ken,
ANZ Bank and inlaws is ME
I'd have to confirm either way, I believe it's consent to a second mortage.
10-15 days wow! Inlaws have spoken to their bank and apparently nobody has contacted them (i'm not sure if such conversations would be captured in a general customer crm but i'd assume so) . Assuming 15 business days, that would leave us with 3 weeks left out of our 6 week period.
Lawyer has made me aware of interest...I don't want to pay that!
Doesn't seem fair how a bank requires a signed contract of sale for a full approval and then takes 3-4 weeks to respond if you're approved! I don't see how we could get knocked back as the inlaws are in a good financial position, but for whatever reason, if we do that puts us in a risky spot. Visibility would be nice
Hi guys, a first home buyer here. Through my mortgage broker I was conditional approved for a loan, we found a place and moved on the signed contract of sale (a requirement of the condition oddly enough). All requirements were approved (valuation etc) pretty much 24 hours, except one where the bank had to sort the gauraontor amount from my inlaws. Their house valuation is fine and approved, house is paid off except however they've kept $2000 in their offset (or something I don't really understand to be honest) and this requires our bank to speak to their bank and organise a remortgage for the amount required. We were told it would be 24-48 hours, that was 9 days ago and the days before settlement are closing in on us. Mortgage broker said he's helpless as its up to the banks, banks say I have to go through the MB for any updates and I'm sitting here quite anxious about what's going on. Nobody can give us even a status update (is it with our bank or inlaws?) I'm considering just going for a loan with someone else but concerned I'll fall into the same problem. Is there a way to escalate this beyond my broker calling his BDM who doesn't seem to care either way? 9 days is well beyond the quoted 2! Very precarious position ...
Thanks!
A follow up question here is; if I'm able to get the remainder required to only borrow 80% can ammend the application and 'stay in line' (so to speak) or do we have to start from the beginning?