Hey finance gurus,
I just had a couple of questions regarding the subject.
1- What are the pros and cons of pre approval? Also do you need to meet certain criteria before the banks will pre approve a loan? (Apart from the obvious lending criteria, my mate mentioned he did not have enough savings for pre approval)??
2 - In the subject to clause on a contract, what do you lose if you do not proceed? For example subject to finance and finance falls through or subject to building and they find terminates. I am aware of the .25 if you pull out during the cooling off period but my understanding is that is when you actually unconditionally purchase the property. If finance fell through would the borrower get this deposit back?
I just had a couple of questions regarding the subject.
1- What are the pros and cons of pre approval? Also do you need to meet certain criteria before the banks will pre approve a loan? (Apart from the obvious lending criteria, my mate mentioned he did not have enough savings for pre approval)??
2 - In the subject to clause on a contract, what do you lose if you do not proceed? For example subject to finance and finance falls through or subject to building and they find terminates. I am aware of the .25 if you pull out during the cooling off period but my understanding is that is when you actually unconditionally purchase the property. If finance fell through would the borrower get this deposit back?