My partner and I have found a PPOR offered for private sale which we close to making an offer on. We have done the research and believe our offer will be under what the property is worth. We have done all the checks including P&B and had the contract/S32 reviewed by a Lawyer.
Issue is the agent has indicated the owner is likely to reject offers "subject to finance".
We have done the maths with a mortgage broker and we will only need a loan of 60% LVR based on what we are going to offer. Also on our incomes we are easily able to service a loan of the size we need (would be able to service one double the size).
I have worked out that the bank would have to value the house at a RIDICULOUSLY low level (based on similar sales) for the LVR to even approach 80%. I can't see it happening.
I would imagine that there is low risk with going ahead with purchases without the "subject to finance" clause if that allowed us to get the house at a good price but what do other people think? Have we missed some other scenario that "subject to finance" would protect us from?
Issue is the agent has indicated the owner is likely to reject offers "subject to finance".
We have done the maths with a mortgage broker and we will only need a loan of 60% LVR based on what we are going to offer. Also on our incomes we are easily able to service a loan of the size we need (would be able to service one double the size).
I have worked out that the bank would have to value the house at a RIDICULOUSLY low level (based on similar sales) for the LVR to even approach 80%. I can't see it happening.
I would imagine that there is low risk with going ahead with purchases without the "subject to finance" clause if that allowed us to get the house at a good price but what do other people think? Have we missed some other scenario that "subject to finance" would protect us from?