Chances of being approved on LMI

K

Kylz69

Hi All
I am a first time property buyer (home) though I do have a property in nz, being settled hopefully in 3 months with the other owner (buying me out)

Anyway I have applied for a loan, due to me having non genuine savings, the proceeds of the deposit was from selling a business.
I did have savings but bought a car in Nov realising it would be better to do before a house.

The bank have passed my application on to the LMI assessor, and from what I can gather it meets the bank criteria.
Its been ongoing since monday, and now stressfull as its Friday afternoon and I dont have an outcome.

What are the chances of it being declined by the LMI?
I dont have genuine savings, tho the bank clarified the car purchase (cash) and the funds from the business.
I ahve checked my veda file, no defaults and only 3 enquiries (well 4 now with the bank)
the only bank I was able to go with was liberty due to the 'non genuine savings'

Thoughts?
 
Hiya

With many lenders if the LVR is 90 or less gen savings arent a hassle usually

95 thats a diff story, but even there it may be possible


ta

rolf
 
Um

The bank is liberty finance apparently the only ones that will look at my non gen savings.

With the amount I'm trying to borrow I think I have 34k dep on 366k
But I now have a S&P at borrow amount of 349 incl that insurance but the LMI people don't know that.
I was trying to get preapproval before offering but it's taken too long.
 
Liberty is fine. LMI will look at other aspects of your application - i.e. financial position (assets and liabilities), employment, and you the applicant. If those are fine then should be ok. They will not decline it based on NG.

Their turnaround times are ok at the moment. Are you going through a broker or direct? Have you escalated the application?

Regards

Shahin
 
90% doesn't need genuine savings necessarily.....

Anyway best of luck it should be OK if you got good asset and income backing.
 
Does not have to be liberty there are plenty of other options for ngs out there just need to look further - wide bay is a good option and are up front with decisions. Once it has been to lmi though you will generally not ge a 2nd shot though. It will depend on a lot of factors on ngs deals but they can be done.
 
Yes plenty of options for NGS on 90% but not many on 95% (in fact 5 that I know of). I would strongly suggest that at 95% you do not shop around and have multiple hits on your credit file.

Regards

Shahin
 
No

I wont be re shopping around.
If this does not go through (I will be so dissapointed)
But my house in NZ should settle in April, and I will then have the 20% deposit and not need the LMI.

There has been huge growth in the area im looking to buy and I decided to try at the 95% rather than wait for the house to settle.

Im wondering if I need to let them know that I have a S&P agreement at X $, because that actually brings the deposit to something like 9.8%
I could bring the deposit to 10% with the savings from my next pay (in 3 days) im just hoping to not have to do that, as will squeeze me on moving costs etc.
 
Oh and

Im going through a broker.
However the broker is in the eastern states and I am WA so the time difference is being a PITA
 
I see

I have maybe not handled it ideally now.
as you are right, the LVR will be at 95% which I do not need. Tho at the time of application I was not sure what I did need.
Tho I think even at the higher amount applied for 367k, the deposit is 9.2%, I dont know if they round it up or down or what.
I have secure employment in a gold mine, and I can service the loan no problems at all.
The property in NZ is really the only assett and no one has asked for proof of that yet, plus the car I paid 9k cash for in Nov.

I dunno what will be will be I guess.

Im just gutted I will have x 2 hits on my Veda file over nothing, and looking dodgy, if this doesnt come off.

Im a bit dissapointed my broker hasnt been in touch today either, but I guess if no outcome yet nothing to say.

He seemed to think it would be ok, as has actually been through the credit dept at Liberty, and said they generally know what LMI assessors are looking for and wouldnt have passed it on.

Roll on freakin monday!
 
Kylz69 said:
He seemed to think it would be ok, as has actually been through the credit dept at Liberty, and said they generally know what LMI assessors are looking for and wouldnt have passed it on.
Click to expand...

thats largely true of such lenders and mortgage managers, but not of lenders generally.


Mud at the wall and eventually enough will stick to justify existence

ta
rolf
 
Kylz69 said:
I have maybe not handled it ideally now.
as you are right, the LVR will be at 95% which I do not need. Tho at the time of application I was not sure what I did need.
Tho I think even at the higher amount applied for 367k, the deposit is 9.2%, I dont know if they round it up or down or what.
I have secure employment in a gold mine, and I can service the loan no problems at all.
The property in NZ is really the only assett and no one has asked for proof of that yet, plus the car I paid 9k cash for in Nov.

I dunno what will be will be I guess.

Im just gutted I will have x 2 hits on my Veda file over nothing, and looking dodgy, if this doesnt come off.

Im a bit dissapointed my broker hasnt been in touch today either, but I guess if no outcome yet nothing to say.

He seemed to think it would be ok, as has actually been through the credit dept at Liberty, and said they generally know what LMI assessors are looking for and wouldnt have passed it on.

Roll on freakin monday!
Click to expand...

Give the broker the benefit of the doubt - if the application is decent then you will have no problems at 95%. Let us know who you go.

Regards

Shahin
 
Update

So, nothing ever goes smoothly in my life.

However I have had an offer on my NZ property from my ex, slightly less than we agreed on, but will bring me over the 20% deposit threshold, which saves me more in LMI than I lose with him.
This makes me estatic as I wont need the LMI, so the outcome doesnt matter a lot to me now.

However due to this bening proceeds from a property sale, I believe that this will count as a genuine deposit, so im thinking im better going to one of the big 4, than staying with liberty due to the issues I had with the deposit.

The million dollar question, is will the big banks shy away from me now having 2 hits on the credit file this week from liberty and the lmi people.

Or should I just suck it up, stay with liberty, adn pay a higher interest rate for the rest of my life.
Apparently if I refinance I need to pay stamp duty?
 
Kylz69 said:
So, nothing ever goes smoothly in my life.

However I have had an offer on my NZ property from my ex, slightly less than we agreed on, but will bring me over the 20% deposit threshold, which saves me more in LMI than I lose with him.
This makes me estatic as I wont need the LMI, so the outcome doesnt matter a lot to me now.

However due to this bening proceeds from a property sale, I believe that this will count as a genuine deposit, so im thinking im better going to one of the big 4, than staying with liberty due to the issues I had with the deposit.

The million dollar question, is will the big banks shy away from me now having 2 hits on the credit file this week from liberty and the lmi people.

Or should I just suck it up, stay with liberty, adn pay a higher interest rate for the rest of my life.
Apparently if I refinance I need to pay stamp duty?
Click to expand...

personally, take the loan from lender x, almost all lenders that I know will take prop sale as gen savings if u can prove where the cash came from

However, now that you have a mark on your file from Liberty and Genworth, please ensure you get a copy of the approval to keep in your files as needed

ta
rolf
 
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