Extending finance clause

[chunho01]

I initially signed on an unsually short 'subject to finance' clause under REA pressure and the fact that a rival purchaser is willing to go unconditional.

Now that fleeting 7 days clause is ending, and the broker is asking for another week. (I mean, 7 days was insanely short to begin with). Since it is the first time I'm doing this, so do I just call up my solicitor? He'll sort everything out? Can the call be made as late as the morning of the last day of finance clause? Do I need to inform the REA?

 

[D.T.]

Ask your solicitor/conveyencer, they'll ask the vendor's solicitor/ conveyencer. If they're ok with it they'll amend it. If they're not they'll kill your deal.

 

[Brady]

What's the hold up with finance?

Who's the bank?

Has the application been submitted and assessed?

Are you waiting for documents?

Are you waiting on a valuation?


7 days is plenty of time to get a decision.


As mentioned above request a extension.

 

[Jamie M]

7 days can go quickly - especially if there's a full valuation involved. Sometimes access issues to the property can slow things down.

The request will need to go via your solicitor.

Cheers

Jamie

 

[chunho01]

Everything has been done, just a waiting game. Valuation just came back today with positive result.

I'm not too sure what is the holdup now. Broker is expecting an answer really soon in 2, 3 days, which by then the clause will have expired. So I thought might as well ask for an entire full week to be safe.

The true question, can I make this call on the morning of the last day?

 

[Peter_Tersteeg]

It's certainly possible to get finance in 5 working days, but it doesn't take much to throw that timetable right out and it can be completely out of everyone's control. I've had an unhappy tenant can refuse a valuer access and delay the valuation process by over a week.

Given the conditional approval has been granted and the valuation done, all that really needs is for an assessor to pick up the file and sign it all off. About 15 minutes of work, it's just sitting in queue. You might have the positive result tomorrow, almost certainly by Friday.

You can make the call on the last day, even with a few hours notice. Your broker can also call the solicitor to let them know where it's at to give more piece of mind as well.

 

[Greg Reid]

You have the option to go unconditional if you are confident of obtaining finance. While I recommend to all clients to get a pre-approval, some chose not to as long as they/I am confident they will get finance.

By all means try to extend the finance clause date to be safe, but if the option is to lose the property and you want it, you need not do anything and it goes unconditional.
Good luck with it.

 

[chunho01]

Advice of Loan Approval received! I take this as the final confirmation that I'll need to proceed unconditionally

First IP succesfully bought.

 

[Big Will]

Congrats, well done