Pre-approval - advice needed

[groperfish]

Hi all,

Earlier this year, my wife went into a bank and was given pre-approval. Both names were on the loan (mine included) even though I was not there.

The terms of the loan haven't been dictated, but we were borrowing 95% - now we will be borrowing less than 75%. The only aperwork we have is a piece of paper - Standard Variable Home loan, subject to LOW deposit premium. (This wont be the case anymore).

Questions I have;

1. I have recently changed jobs (2 weeks) but am still employed by previous employer to do work as needed. Can I use my last 2 payslips from previous employer as I don't have any from the new employer (all I have is a letter stating how much I earn, no probationary period, and was an emplyee before, etc...)

2. Is there any way to tell if this is a low-doc loan? The bank hasn't asked to see details of property, only that we provide a contract of sale, evidence of deposit, and 2 payslips.

Concerned as we'd like to bid this weekend, but time is running out. Would love to hear any advice. Thankyou kindly,

Adam.

 

[bricman]

Adam

Im going through the a similar scenario, Im having to go BACK to PAYE from contract because the bank is nervous about regular income. If you have a good boss, they can write the appropriate supporting letters for you.

Best bet is to talk to a broker or a lending manager at a bank, they will advise you on the finer points, there are lots out there. im using www.perryfinance.com in Melbourne although Im in Sydney.

Personally wouldn't go for a low doc loan on an IP, just sucks the profit form your deal.

Basically the banks are now more strict with their lending but they are still lending, don't believe all the hype out there, make your own informed decisions.

Hope this helps

Ian

 

[rugrat]

Basically that peice of paper you have for Pre-Approval is now worth Jack. Your cercumstances have changed, therefore the pre-approval in now invalid. Go to a broker find out if anyone will lend to you given you changed work circumstances (many lenders require you to hold a position for a min of 3-6 mths).

Godd luck

 

[Rolf Latham]

Having said that the approval is worthless, at 80 % or less quite a few lenders will look at this as long as you are in a similar industry/ job and have had good job stability

ta
rolf

 

[groperfish]

Thanks for the advice. Have approached a broker, and I must say, wonderful. Very pleased.

To reiterate this, the Broker called back numerous times today and replied to emails immediately. The Loan advisor at a 'big-4' bank didn't return my calls, nor could the 'advisor' I managed to get on the phone advise me wether the pre-approval was for a low-doc, among other things.

I am *slowly* getting a grasp on this. Thankyou for all your help.

 

[Rolf Latham]

Hi Groper

Thats often because the broker no sell, no eat.

Big 4 salaried staff member...........no sell, no jam doughnut on Friday mornings

Incentive is an interesting concept

ta
rolf

 

[groperfish]

Pre Approval through a broker now sorted. Very pleased, but still alot of work as I'm sure you are all aware.

I have another question; out of interest, say I am starting a new job in 2 weeks (same industry, just a much better offer), will this affect our financing for any future properties that we want to bid on? I am not sure how the Auction will go this weekend, but I am seriously considering accepting the offer...

And thanks for the above information.

 

[Rolf Latham]

In general, you cant reply on a pre approval if one of the material conditions such as employment change.

yes, in most cases with a loan of less than 80 % LVR youd be ok if there is no probation and you have had no more than a couple of jobs in the last 45ish years.

ta
rolf

 

[groperfish]

In general, you cant reply on a pre approval if one of the material conditions such as employment change.

yes, in most cases with a loan of less than 80 % LVR youd be ok if there is no probation and you have had no more than a couple of jobs in the last 45ish years.

ta
rolf

Ok Rolf, thankyou for the advice. I am hoping approval comes through... and we will certainly keep LVR under 80.

Have a nice weekend.