Loan contract review/variation

Hi there,

Does anyone review their lender's loan contracts before they have gotten an offer accepted (eg. with a pre-approval in place initially and/or subject to finance/valuation)... ?

My last IP, I bought it with an informal pre-approval in place initially and then with an offer subject to finance (ie. mainly a valuation).

The offer was accepted and went unconditional... and I only got the loan contracts a month later.

Kind of puts you in no-man's land with respect to negotiating certain loan contract clauses with the bank doesn't it!

Come to think of it... this is basically what's happened with all of my purchases!

Suppose you could just ask the lender initially for the contracts they would use if a purchase were to go ahead?

And if you didn't like them you could negotiate with them then about any variations.

And if you made an offer subject to finance you'd make sure you'd seen the varied loan contracts before going unconditional.

Though if you were to go unconditional straight up, there's no guarantee the lender would follow through on your initial informal contract negotations.

In any case, you'd probably have to be a big client to even have a seat at such a negotiating table!

Any thoughts?
PDS booklets are available along with fees and charges booklets.

A PDS, who would have thought! :D

I guess you could read the PDS first and then get a pre-approval in writing with certain pre-agreed variations to the PDS... ?

Has anyone actually done this before?
question: on normal resi contracts, in the current (read: tight) banking enviornment, would there be a lot of room for negotiation of clauses in the standard banking agreements?
on resi contracts with loan amounts of less than 7 figures, the legal beagles wont entertain much in the way of variations.

Doesnt fit the sausage factory.

have had some success with "getting all monies" struck, but tend to leave that sort of thing to the client and their legal beagles.

Thanks for the replies.

Reading some old threads, the best that others have been able to negotiate is wavering ''all monies'' and various annual fee etc. waivers...
Hi there,

In any case, you'd probably have to be a big client to even have a seat at such a negotiating table!

Any thoughts?

That is one of the benefits of using the same lender as then you can use your relationship to your advantage. Being a repeat customer banks are usually more lenient towards fees etc.