If bank orders a valuation. . ?

[Dazz]

UPDATE** ANZ have declined the loan, saying that they require my wife's last TWO years payslips.. They want proof that her weekly bonus is permanent (which it is, and she banks with the same bank so they can SEE that it is..

More proof that Banks nowadays certainly don't muck around when it comes to proving income....it really is there # 1 criteria.

Any stuffing them around and they are very quick to whip out the big "NO", which generally knocks the applicant back about 4 paces....and generally none in the Bank could give a stuff.

 

[investor2009]

Mate, you're tellin' me!

Will let you know the scoop when I do, hoping for the best but not holding out.
Apparently the squirrels aren't allowed to use their brain or ask question, just tick the boxes

 

[Paul Collins]

It is a 95% loan and to be honest most of the lenders are not interested at this level (depending on a few factors). As the broker how many 95% they have done with that lender. It comes down to finding a solution and getting a result - any one can give you a preapproval it is the formal/unconditional that matters. Good luck and please keep updating would be interested to find out where it finishes. Persistence Pays off eventually.

 

[investor2009]

Thanks for the info.
Yea, it was only them or Adelaide Bank that would be interested in a 95% loan.
We went ANZ because my wife banks with them and has a good record.

Our broker is keen and says its just a matter of time until its approved.
Although we are getting anxious with the long wait.. will keep you updated on the outcome, hopefully really soon, although we've been saying that for the weeks now.

 

[investor2009]

O.k, I am SICK of waiting for ANZ.

Is there any number I can call to speak with someone about getting this tiny bit of paperwork through? I'm wondering if these guys actually do any work over at ANZ? As far as I was aware they were at the final step of the approval process before they requested three pieces of paper for no real reason and now it seems we've ended up with the long wait back at the start of the queue again.. We've extended finance twice now!

 

[Rolf Latham]

Your brokers BDM is usually willing to field a call
ta
rolf

 

[investor2009]

Thanks y'all.

Well, we got our answer, but it wasn't the one we wanted. They turned down our application. .
I'm so dissapointed...

What was supposed to be out first house together in joint names and one we actually 'chose' together after months of searching has come to an end. I even sold one of our properties for the deposit!
Even knowing this, I just can't sit there and take no for an answer, so, here I am again, downtrodden and bruised, but I don't want to be beaten.

Here are the reasons from our broker
1/ Overtime income of $8,000p/a cannot be taken into account because it's not 'guaranteed' although my wife has no choice but to work every second weekend so it actually is guaranteed.

2/ the valuation came in exactly the same as purchase price but had a rental appraisal of $500p/w, had it have had $570 down we would have made it through. Please note we applied as investors because the answer is a straight 'no' when looking at principal and interest PPOR.

3/ My other investment loans were assessed at 9.5%.. Even know ANZ don't assess their loans that high. So all in all our broker had $15,000p/a more than the banks saw.

Here are my ideas. Broker wants to keep trying, please let me know what you think.

1/ We add my cash income on the side which is $8,000p/a that I am declaring this tax year.

2/ Because this was a 95-97%LVR application, can we pull equity from the existing portfolio to bring the total lend down to around 85-90%.
Will that change the banks mind?

I hope you can help and possibly offer other suggestions.
Thank you.

 

[investor2009]

Please note*

The purchase price was $575,000 and we applied with a $70,000 deposit.
What if we could ramp that up to $100,000?

 

[investor2009]

UPDATE** We've found a non bank lender in API, and have just spoken with a gent after hours who's mobile the 1300 number diverted to.

When we asked him if it would be possible to borrow from them after ANZ just turned us down he said 'well are you serious about borrowing the money or not?'
Which I was not expecting. They don't perform vals, have a great interest rate, rank first spot in API's rate section and seem keen to lend.

Apparently preapproval takes 24 hours and unconditional within 5 days. He says they do not muck around like the big banks do.

He said he's call tomorrow so will keep you posted.

 

[Rolf Latham]

no vals

now that sends an alarm bell for me

at 80 % lvr and 500 k I could buy that, at 95 % lvr I dont think GE or QBE would be too keen to underwrite that puppy

Please dont burn your CRAA with a further app unless you KNOW that the lmi provider will look at it favourably, and the non bank lender isnt just throwing more mud on the wall.

I cant count the number of folks who have been where you are now, and got taken down a path that has stopped them for 12 to 18 mths.

If you can get the lend to a 90 % you may have a much increased chance of success for sure.

Finally, do you yet have any written comms on the file from ANZ ?

ta
rolf

 

[Dazz]

Please note*

The purchase price was $575,000 and we applied with a $70,000 deposit.
What if we could ramp that up to $100,000?

...... this was a 95-97%LVR application

Either my maths is failing me, or something ain't quite adding up.....


If the PP was 575K, then a 95% loan would be 546K

If you put down a 70K deposit, then that equates to a 12% deposit, therefore a LVR of 505/575 = 88%.


How much exactly are you requesting to borrow ??

 

[investor2009]

Thanks guys.

No, no docs from ANZ, the broker may have them but no mention to us.

And to answer Dazz's query. I wish we knew. Our broker doesn't tell us what he's doing, all he said was 'LMI will be $23,000 and your loan will end up $557,000. I know stamp duty here will be $28,000

I have a meeting with him tomorrow as the sun comes up before work.
The REA just called also and the vendors won't take any of his calls because they're angry with him now.. He has referred me to another broker who is apparently cream of the crop and if he tells me he can help, he will.

If no-one can come up with a solid plan of action then I will approach the non bank lender, so long as the overall LVR is do-able with their mortgage insurer.

 

[Rolf Latham]

Hiya IV

this is just me, so tell me to go away.

You need to see the faxes from ANZ to the broker, so you can see whats gone on here before you proceed to bury ANZ.

The 8 k ot isnt the issue, but the 9.5 % PI assessment rate on exist loans may be.

If its the assessment rate where the "error" lies, then at least you will know this is what the issue actually is, and one needs to be more careful with making the next appln with whatever lender

Somehow, somewhere, something has come unstuck, because policy on reliance of OT, existing debt etc are quite clear. Just want to make sure some sausage factory operator hasnt sunk ur app for the wrong reason, which to be fair to your broker is a common issue for us at ANZ.

BTW, ANZ has one of the worst Serviceability models for this kind of work, and they wouldnt be my first call most times for a deal like yours, esp with an exposure of 500 k @ 95

What other lenders do u have cards or savings accts with ?


ta

rolf

 

[investor2009]

Thanks Rolf.

After meeting with my broker this morning your points sound valid.
He said that ANZ have been really bad as of the last two weeks and have also changed some of their lending criterea. He showed me both docs also.

He is going to give me a call before noon to see what he comes up with but he sounds like he has been doing a good job. He has told of a plan of attack, we are now hoping this next particular lender does not require a certain something as ANZ didn't. . That's why he used ANZ to start with, plus another reason that related to our situation.

 

[investor2009]

Holy.. I just go a call from the independant non bank lender. And he has well and truly opened the can of worms..!

I told him what you had said and he got angry right away, stating that the broker I spoke to is a 'bloody idiot' (being Rolf's safe advice)
He even said 'tell him to call me and Ill tell him' I only said that an indipendant broker has safely told me that I could be out of any chance of a loan for 12-18 months if I get too many hits on my credit score.
He sounds Italian and crazy, but still keen for business.

He says if I fill in the app forms they will tell me if we are likely to be approved, and then If I ok the situation, they go ahead with the full app and credit checks. They only require 2 weeks pay slips, drivers license, last years group cert and that's about it. I like the sound of it because they're so leniant and the rate is 6.7% or 7% fixed for 2-years.

Sound ok?

 

[Rolf Latham]

Perhaps the worms are good for catching fish

I resign my sanity check shingle to the man with the Italian Accent.


Canna help u here....

if u are willing to post the name of the company here or pm it to one of the broker folk they may be able to provide more than a stab in the dark.

Ultimately, the funder will almost always approve the loan, thats not the issue, we know your credit and your serviceability is ok, just sucky with ANZ because of the way they do thing.

The decision maker is not the lender, its almost always the one who takes the real risk, that being the mortgage insurer. There arent many non banks that I know of that have LMI underwriting auth for loans > 500 k at 95 % with no val.

I suspect you will get the same hungry response from every lending advertiser from those magazines, they have little to lose.

ta
rolf

 

[Mick C]

Holy.. I just go a call from the independant non bank lender. And he has well and truly opened the can of worms..!

I told him what you had said and he got angry right away, stating that the broker I spoke to is a 'bloody idiot' (being Rolf's safe advice)
He even said 'tell him to call me and Ill tell him' I only said that an indipendant broker has safely told me that I could be out of any chance of a loan for 12-18 months if I get too many hits on my credit score.
He sounds Italian and crazy, but still keen for business.

He says if I fill in the app forms they will tell me if we are likely to be approved, and then If I ok the situation, they go ahead with the full app and credit checks. They only require 2 weeks pay slips, drivers license, last years group cert and that's about it. I like the sound of it because they're so leniant and the rate is 6.7% or 7% fixed for 2-years.

Sound ok?

They calling you hey... business must be tough.
One thing you need to find out from your broker is; was your LMI rejected also? and has it been viewed by LMI etc?

Because going to a diff lender may help..but the LMI will either still be QBE or Genworth....and QBE does not look at policy where Genworth has previously rejected the file.

Regards
Michael

 

[cdawg]

1.If you have 3 months evidence of the overtime then they should take this.
Even if its LMI

2. The valuation might state $500 rental but if you have letter from a real estate agent showing $570 they can use this. Note that ANZ use the rental letter with a toolkit to confirm if the $570 is resonable. so it might come back at the $500 rate

3. Your broker probably isnt the best if he dosent know ANZ policy on sensitised rates is 25 years at 1.75% above the SVR.

Hope this helps

 

[Rolf Latham]

bit late now but there is finaly some sense

doesnt mean they will actually adhere to the policy : )

http://www.anzbrokerdistribution.com.au/pdf/110630_Mortgage_Mattrs_PDF.pdf

 

[investor2009]

Hi!

Thanks for the PM Rolf. I would call, but the situation has changed once again.

A new broker who is highly recommended by my conveyancer says he would not bother lodging another application if he did not think it would go though so he will be preparing over the next couple of days. Has spoken to the lender over the phone about us and they seem good about it.

The problems
1/ LMI does not normally lend any more than $500k in the rural area, they will call the mortgage insurers tomorrow and see if they are prepared to go to $535k in this one instance.

2/ They say our regular broker has possibly screwed it by hitting the credit file.. They hope the mortgage insurers will look favourably at the one hit.

So we have a possibility once again.

Another problem.

We require $72,000 to settle and the bank wants proof of this. We have $67,000, but we want/need (sleep at night factor) $90k.
I just called CBA to see if topping one of our loans up would hit the credit file but they said they could not do this over the phone anyway because the loan is interest only.. Which beats me? They told me to go back to the regular broker. BUT, Even if we top it up through him, will we now have two hits on the CRAA instead of one?

Firstly, we need to know if it is a certainty that if we get the new loan, we can pull $25k from CBA existing property because if it's not certain then we can't really settle because we will be too poor..