Questions about offer and deposit bond

[MCT]

Hi, great site guys. Lot's of really good information on here.

I'm very new at all this, but basically I'm buying my first property to live in myself. I'm struggling a little bit to understand the buying process in my situation. A little background info:

I've got pre-approval through CBA for the loan, it's conditional on valuation of the property. I am borrowing 97% of the sale price using my parents home as security, so the pre-approval is conditional on the valuation of their property also although that won't be a problem.

I will be paying the deposit via way of a deposit bond, but I'm guessing I won't get one until the house I'm looking at gets valued by the bank and I get unconditional approval.

I'm at the stage where I'm ready to start making offers on a property but I am wondering what I will do if one gets accepted. I will put in a written offer that gives me 10 business days cooling off period subject to the usuals (P&B inspections and finance) so I guess I will need to make all that happen and get the loan offically approved within those 10 business days. Is that correct?
And if that is correct, do you think I am allowing myself and the bank enough time to get the loan fully approved?

Also, one last thing, seeing as though I will have to have all the inspections done and the loan approved before I can have the contracts exchanged and a deposit given, will I be able to offer a really short settlement time? Or am I missing some steps here.

I appreciate any advice, hope all that makes sense!

Thanks.

 

[Robear]

I'm in Sydney so the process may be a bit different but from my experience what you say is basically correct.

I just sold a property to a person who took a month to exchange but wants to settle two weeks later. No problem to me but her bank is saying they cant get their act together for another 3 weeks. Valuations and approval were done weeks ago but apparently thats the quickest their back office can process the details.

This could cause a purchaser some problems if they exchange with a quick fixed settlement date and they can't meet it.

 

[kinga4610]

MCT

Your post is really disturbing to me. You only have a 3% deposit and borrowing against your parents house for the rest. Have I got this right???

How do you expect to pay for this house, if you haven't had the foresight to even save for a deposit for your very first house.

I guess I have seen too many ACA stories where parents have lost their homes due to kids using the parents houses for loans which they initially have good intentions of paying back but just don't or can't.

What's the hurry??? Why not save a deposit and stand on your own two feet and leave your parents house out of the equation??

If I have misread your post, I do apologise.

Kinga