paying deposit

[Allgood]

Hi all,

Just settled on IP 4 but wanted to see what is the norm when exchanging...
Our was offer was accepted a little over a week ago. The sales advice has been sent, solicitors details provided etc etc. I've signed the contract after meeting with solicitor but there are a few certificates that the solicitor wants updated so this will take time.

The agent is getting a bit edgy because we havent exchanged. We will be redrawing the deposit so we can do it at any time, but when you buy you only pay deposit after/at exchange, yeah? How long does it usually take you guys to exhange, given it's not an auction??

Thanks in advance,
Allgood.

 

[Jamie M]

Generally pay the balance of the deposit at exchange (depending on the state) - exchange generally occurs when finance has been formally approved and all reports come back satisfactory.

Cheers

Jamie

 

[Allgood]

Thanks Jamie,
You said 'balance of deposit' I haven't paid anything yet. That's not unusual is it (in NSW).

 

[Brady]

Believe this is the property we discussed.

Allgood pay deposit with exchange of contract.

Exchange of contract after finance and certificate finalised.

 

[Allgood]

Hi Brady, yes it is!

That's what I thought - the agent's just being a little precious!

Thanks

 

[Allgood]

So, it's been at least a fortnight since our offer was accepted and still waiting for unconditional approval (we had pre-approval.) Is westpac renowned for being extra slow or is this normal? They tell me it's all good - they're just busy...

 

[Propertunity]

Is westpac renowned for being extra slow or is this normal? They tell me it's all good - they're just busy...

Yes, they can't afford to put on more staff - they don't make enough profit.

 

[Colin Rice]

So, it's been at least a fortnight since our offer was accepted and still waiting for unconditional approval (we had pre-approval.) Is westpac renowned for being extra slow or is this normal? They tell me it's all good - they're just busy...

Can happen but seems a bit extreme.

I would request an esculation on the file via broker or branch lender.

 

[Allgood]

Spoke to westpac today and they said they're just waiting to value the property we're drawing equity out of for the deposit.... LVR on the existing property after paying deposit + costs will be about 58% (last val was 1.5 mill)

First I'd heard of it, if a valuation was necessary should it not have been done when we were granted pre-approval? The purchase price, + costs etc totalled about $80,000 less than what we were pre-app'd for.

 

[Brady]

Depends on your broker/banker. I personally like to extract the available equity out ASAP / equity release. That way you don't have the current troubles you're having waiting around for a valuation, especially when it's not a val for the property you're buying. Really should of been done before now, poor planning IMO.

 

[Jess Peletier]

Yep I agree - I prefer to have the equity sitting ready to go well before it's needed. Way less stressful that way.

 

[Allgood]

Hi,

But shouldn't this have been sorted by the bank during pre approval? I have cash sitting in offset that I can pay deposit with, but don't people usually get pre approval, then an unconditional offer from the bank before exchanging/putting down 10% deposit?? Or do you exchange before finance is unconditional?

 

[Brady]

Depends on who your banker or broker is, I would of got the funds available. A pre-approval is just that... Pre. No valuation ordered. Should of gone to formal approval and funded the equity release.