Bank requires a fully signed contract to get full approval

Discussion in 'The Buying/Selling Process' started by mja, 16th Jun, 2015.

  1. mja

    mja Capitalist.

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    Vendor's solicitor in NSW doesn't want a cooling off period, but in order to get full finance approval I need a fully signed contract. My offer was subject to finance, so I'm using "Way 2" of Propertunitie's buying post :D.

    In this case we've got the contract from the agent, not the vendor's solicitor.

    I don't want to sign a 66w form if finance has any chance of falling through (who knows these days).

    What do?
     
  2. mflying

    mflying Property Developer

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    As you said..bank wants fully signed contract.

    In most cases, you just sign first two pages and send that to bank for valuation/approval.


    Don't sign 66w..if you are worried about finance.
     
  3. mja

    mja Capitalist.

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    So do banks usually need a fully signed contract? I've sent them the 'signed by me' contract. :) Or is this approved as much as it can be (effectively full approval) and it's now just policy and paperwork?
     
  4. mflying

    mflying Property Developer

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    I have only been asked few pages (first two) depends on which state.

    I m pretty sure what you sent bank should be sufficient for approval/valuation.


    Best to consult your broker/banker!
     
  5. Shahin_Afarin

    Shahin_Afarin Finance Broker

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    Most lenders will just require the executed (by you and not the vendor) front page of the contract of sale unless there are special conditions in which they will require the full contract.

    Also note that a lot more lenders are accepting COS (no need for valuation) at 80% LVR.
     
  6. mja

    mja Capitalist.

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    I guess since I'm trying to aim for 90%+ lend, this might be the mortgage insurers requirement too...
     
  7. Jamie M

    Jamie M Mortgage Broker - Oz Wide

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    Hi MJA

    Agree with Shahin - a contract signed by you should suffice. Most lenders will approve the loan on that basis - and expect the vendor signed copy prior to settlement.

    Cheers

    Jamie
     
  8. mja

    mja Capitalist.

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    Thanks all. My banker is about to get yelled at. :)
     
  9. Shahin_Afarin

    Shahin_Afarin Finance Broker

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    ANZ will do 90% and go off the COS but you need to meet a few small conditions. ME Bank sometimes do this as well.

    All other lenders will require full valuations at 90% but again all you will need is the executed front page of the COS. Your signature is sufficient - you don't need the vendors signature until prior to settlement.
     
  10. Jamie M

    Jamie M Mortgage Broker - Oz Wide

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    Nah don't do that - yelling never helps.

    Which bank is it?
     
  11. mja

    mja Capitalist.

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    ANZ.

    Good news - I have just received full loan approval @ 95%. Now I can go unconditional. :)