Finance issues after unconditional approval

Is it possible to encounter issues after exchange and prior to settlement with unconditional finance in place?

I am considering a deal with a longish settlement period (3 months). After unconditional approval has been issued can the finance provider ask for further documentation, more credit checks, revaluation, refuse the loan for any other reason before settlement?

When do you consider you are 'safe'- unconditional approval, after loan documents are issued or anything can change until settlement?
 
Nah not at all.
I've got a development site set to settle on 30th of January on a 90 day settlement. Broker (Corey) had finance unconditionally approved in like 5 days and been sitting twiddling thumbs ever since.
 
Is it possible to encounter issues after exchange and prior to settlement with unconditional finance in place?

I am considering a deal with a longish settlement period (3 months). After unconditional approval has been issued can the finance provider ask for further documentation, more credit checks, revaluation, refuse the loan for any other reason before settlement?

When do you consider you are 'safe'- unconditional approval, after loan documents are issued or anything can change until settlement?

Well the place could go up in smoke.

If you are in one of those states where early insurance is advised then do that.
 
most lenders, under NCCP regs will want to ensure there is no material change to circumstances

Typically, but not always, thats simply a broker or client declaration.

As government becomes more and more concerned about its citizens i would expect this will become tougher over time

ta

rolf
 
If your circumstances change ie. Lose your job, become pregnant etc, you have a responsibility to the lender to disclose. This could pose a problem.

And if you run the gauntlet and not disclose and a situation arises where it can be traced back to this time line, expect consequences!

pinkboy
 
Is it possible to encounter issues after exchange and prior to settlement with unconditional finance in place?

I am considering a deal with a longish settlement period (3 months). After unconditional approval has been issued can the finance provider ask for further documentation, more credit checks, revaluation, refuse the loan for any other reason before settlement?

When do you consider you are 'safe'- unconditional approval, after loan documents are issued or anything can change until settlement?

There's a date that it lasts until, generally 3 months. They generally ask for a declaration that circumstances haven't changed (and could ask for supporting docs).

Cheers,
Redom
 
There are a few lenders who 'audit' unconditional files prior to settlement. This is basically a re assessment.

As noted, if your details change, then be upfront in coming forward. If your details are the same then theres really nothing to worry about.

Im guessing your planning on changing jobs as soon as finance is approved? Dont do it till after settlement is my advice.
 
Or take on another loan before the settlement of the one being applied for? I have heard of lenders declining loans post approval after re doing a credit check. I had an enquiry like that about 9 months ago from an investor who had been knocked back by ANZ after approval but before settlement. They had taken on another large loan $1 mil plus from another lender for another purchase and were then in a bit of bother as ANZ pulled their offer. I couldn't assist as didn't service with all debts.
 
Some do random employment checks post approval/pre-settlement just to make sure that you're still employed. It's quite rare - but I had one occur to a client late last year.

The vast majority of the time though - it all works out fine.

Cheers

Jamie
 
They can...BUT

it's rare esp if it's with one of the majors OR it's under 80% LVR...had one refin that took 6 bloody month with Bankwest - and that was fine/ no recheck. Other one with NAB for a development loan on a 8 month settlement!

If it's with a smaller bank, esp the mortgage mangers ( ie non banks etc..) and the loan is over 80% it's a bit more common after 90 days for a re-check ( in most cases it's a simple declaration)
 
Nah not at all.
I've got a development site set to settle on 30th of January on a 90 day settlement. Broker (Corey) had finance unconditionally approved in like 5 days and been sitting twiddling thumbs ever since.

I would love to be sitting twiddling my thumbs :)
Always find the finance the hardest part of the whole transaction. And getting the keys the the highlight.
 
most lenders, under NCCP regs will want to ensure there is no material change to circumstances

Typically, but not always, thats simply a broker or client declaration.

As government becomes more and more concerned about its citizens i would expect this will become tougher over time

ta

rolf

Happy to sign a stat dec or whatever else as I have no expected changes in the future. Have been in same job for the last decade.....
 
There are a few lenders who 'audit' unconditional files prior to settlement. This is basically a re assessment.

As noted, if your details change, then be upfront in coming forward. If your details are the same then theres really nothing to worry about.

Im guessing your planning on changing jobs as soon as finance is approved? Dont do it till after settlement is my advice.

You guys have all out my mind at rest. I plan no changes at all but I was just worried a long settlement might mean a whole new application/ set of supporting docs are needed right before the settlement which would be the biggest headache. And a process I don't want to go through twice!
 
Quite likely to have to have to provide updated payslps etc if settlement is over 60-90 days away from the original approval.

Had a deal a few years ago where the lender did a employment check on the morning of settlement only to find that the client had resigned (unknown to me) and consequently deal was pulled.

Given the rumoured APRA changes i agree with Rolf i think borrowers will need to get used to requests for additional documentation at all stages of the application.

Cheers
 
Quite likely to have to have to provide updated payslps etc if settlement is over 60-90 days away from the original approval.

Had a deal a few years ago where the lender did a employment check on the morning of settlement only to find that the client had resigned (unknown to me) and consequently deal was pulled.

Given the rumoured APRA changes i agree with Rolf i think borrowers will need to get used to requests for additional documentation at all stages of the application.

Cheers

Put's a bit of a sting in a long settlement period.....
 
Back
Top