Loan approved - or is it? Newbie lessons learnt

[Newie girl]

Thought I would put this out there as a bit of a discussion (and admittedly for a bit of a vent too... )

Buying some land at the moment and have had the loan approved for about 5 weeks. At that time the land title wasn't ready so I was feeling pretty stress free that everything was in order and ready to go (from the finance side of things) 2 weeks till settlement I started to get a bit anxious and thought I would give the bank a call as I hadn't heard anything since the loan approval letter. I was assured not to worry and that they would give me a call once the loan documents were ready to sign. Then a week out from settlement my conveyancer became *really* anxious, and I was only finally able to contact someone at the bank who could tell me what was going on 3 days before settlement was due! The bank explained there was an 'issue' with the loan documents which were wrong and had to be re-done and they would call me asap when the new ones arrived (surely they could have informed me of the delay earlier...) Luckily my conveyancer was onto it and secured a 1 week extension with the buyer.

Today was meant to be the revised settlement date...
Recieved an email early in the morning from the conveyancer asking for my signature on another extension request. Not good. I contacted the bank who say that they have had to get the valuer to send them a new valuation as the old one had the wrong land address on it so the loan assessor can not accept it - huh?!?!? I know people that work in banks are only human and that we all make mistakes but I just can't get over how this would have slipped by? More importantly this makes me wonder whether if the seller decides not to grant the second extension would I have any recourse against the bank for stuffing up the documentation (twice!) and making me miss out on the property?

Luckily I think the seller will be OK with the second extension but it does make me realise that the loan approval is only the first hurdle and that clearly there are so many other things (from a bank finance point) that can go wrong until settlement (though I'm sure the seasoned investors are only too aware

Definately lessons learnt for next time...hopefully there's no more 'document' issues and the deal goes through!

 

[Rolf Latham]

As u say lesson learnt

Wont happen to u again


ta
rolf

 

[Dazz]

the old one had the wrong land address on it

Hiya Newie girl,


Happened to me a few weeks ago as well.


Big expensive law firm out of Melbourne working for the Vendors I'm buying off completely ****ed up the Lot number we were buying in the Contract of Sale. We corrected it and pointed out their lax checking.....it's a fairly big deal when you think you're buying one plot, and the paperwork reflects something else down the road.


You sort of wonder, if I didn't pick this small detail up, would anyone else ??


Of course the big flash lawyers just shrug their shoulders and carry on, without apologising, without so much as a "by your leave". Some poor secretary no doubt gets blamed, whilst the lawyers all duck for cover....it's their favourite sport and they are damn good at it - limitation of liability - it's all the rage nowadays.


What I don't understand is why the Vendor who's paying them big bucks doesn't put a rocket up 'em. They just accept mediocrity and move on.....and so the cycle continues. Charge the most and deliver dross. You get what you pay for in reverse. You don't get - but you sure do pay for.