"Long" settlement
- Thread starter cimbom
- Start date
I'd be sitting down with a broker now and getting a realistic assessment of your ability to get finance. You'll get one of three answers:
1. Easily done
In this case simply wait until 3 months prior to settlement and apply then. Perhaps get a copy of your credit report and a valuation for the property to cover yourself.
2. No chance Exit the contract now.
3. Perhaps, but could be quirky Get a pre-approval now on the understanding that you'll need to re-apply closer to settlement.
In the event that you do proceed, (options 1 or 3), make sure that you clearly understand that your financial circumstances need to remain the same or improve and what this means to you specifically. Getting finance approved now does not guarantee that you'll still be eligible tomorrow.
1. Easily done
In this case simply wait until 3 months prior to settlement and apply then. Perhaps get a copy of your credit report and a valuation for the property to cover yourself.2. No chance
Exit the contract now.3. Perhaps, but could be quirky
Get a pre-approval now on the understanding that you'll need to re-apply closer to settlement.In the event that you do proceed, (options 1 or 3), make sure that you clearly understand that your financial circumstances need to remain the same or improve and what this means to you specifically. Getting finance approved now does not guarantee that you'll still be eligible tomorrow.
Hello,
Just wondering when I would need to apply for finance if I was having a long-ish settlement of 4-6 months?
Thanks
Hiya
Like PT said - it's a bit of a stretch. Three months is fine. Some loan offers can also be extended - but it's not something you really want to have to request if you can avoid it.
What's the reason behind the long settlement?
Cheers
Jamie
Hello,
Just following up this thread. We have found a townhouse that we like and would like to make an offer on. We would need a 4 month settlement on it because our savings have taken a bit of a hit recently (husband needs to pay uni fees upfront).
So, when we apply for finance (3 months before settlement - i.e. a month from now), we will have enough for a deposit but not enough to cover the other buying costs (capitalised LMI, legal costs, etc). We would have this by 1.5 months before settlement but would like a few extra weeks in case. The stamp duty is only $20 as we would qualify for the concession.
Would this work?
Thanks
Just following up this thread. We have found a townhouse that we like and would like to make an offer on. We would need a 4 month settlement on it because our savings have taken a bit of a hit recently (husband needs to pay uni fees upfront).
So, when we apply for finance (3 months before settlement - i.e. a month from now), we will have enough for a deposit but not enough to cover the other buying costs (capitalised LMI, legal costs, etc). We would have this by 1.5 months before settlement but would like a few extra weeks in case. The stamp duty is only $20 as we would qualify for the concession.
Would this work?
Thanks
I would personally get the approval now for peace of mind but horses for courses.
When you say "would it work" - work for who the bank? If so, yes. The bank will need to know how you are completing the sale.
Regards
Shahin
When you say "would it work" - work for who the bank? If so, yes. The bank will need to know how you are completing the sale.
Regards
Shahin
Thanks for the reply. By "would it work" - I mean, would the bank care that I am applying for finance without having all the buying costs except deposit saved?
As I said above, I would have the other costs well before settlement but not at the time of applying for finance. I would apply for finance 3 months before settlement and should have full funds available by 1.5 months before settlement.
As I said above, I would have the other costs well before settlement but not at the time of applying for finance. I would apply for finance 3 months before settlement and should have full funds available by 1.5 months before settlement.
The banks will want to see that you've got funds to complete settlement which you don't have right now.
What you're going to need to show them is a clear savings history. You've been putting $X away every month, and if you continue this pattern for another 2 months, you'll easily have funds for settlement. Essentially be prepared to show the bank 3-6 months of savings history with a detailed explanation of any extraordinary expenses.
What you're going to need to show them is a clear savings history. You've been putting $X away every month, and if you continue this pattern for another 2 months, you'll easily have funds for settlement. Essentially be prepared to show the bank 3-6 months of savings history with a detailed explanation of any extraordinary expenses.
Why take the risk?
Finding a financier to pre approve 6 months is possible, The reality is that you haven't the financial capability to he bank will say ; sure ' sure ' no problem based on a few ( obvious ) conditions . If you don't for whatever reason ged t the loan later . can you sustain the penalty? Sounds to me that you are a little ambitious, a prior post mentioned a savings history .. .I suggest that you wait until you are pre approved ( subject to valaation etc etc) and where you may have some negotiating power..good luck ..property investment is a 30 year plan a few months is neither here nor there...
Finding a financier to pre approve 6 months is possible, The reality is that you haven't the financial capability to he bank will say ; sure ' sure ' no problem based on a few ( obvious ) conditions . If you don't for whatever reason ged t the loan later . can you sustain the penalty? Sounds to me that you are a little ambitious, a prior post mentioned a savings history .. .I suggest that you wait until you are pre approved ( subject to valaation etc etc) and where you may have some negotiating power..good luck ..property investment is a 30 year plan a few months is neither here nor there...
Yes and no. Technically they need to know where you will come up with the shortfall of funds but having said that they will accept it if you said it is coming by way of cash or savings in another account. So short answer is that this is not an issue re finance.
Regards
Shahin
Shanin is correct
different banks do have different attitudes, and a good finance broker will find the best to suit your situation..Many factors are involved in a finance approval -involving your solicitor before the cooling off period lapses would be a good move .. along with any letter of offer from a financier ...these things are easy to get into ..hard to get out of ...
different banks do have different attitudes, and a good finance broker will find the best to suit your situation..Many factors are involved in a finance approval -involving your solicitor before the cooling off period lapses would be a good move .. along with any letter of offer from a financier ...these things are easy to get into ..hard to get out of ...
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