slipping through my fingers

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From: Joo Joo


How r u guys n gals

Everytime I think I have grasped the concept, it seems to just slip through my fingers again.

Financing an OTP,I'm just going to shoot off a few questions and I hope some of you can help me out, here goes.......

Do you need a preapproval in order to attain a deposit bond?

does this mean you have to go through the whole proccess and actually get approved on the whole amount of the loan, deposit and all?

If you are approved and collect a deposit bond, what do you do with the deposit? can you spend it?

On settlement I am guessing you have to get approved again, does this mean that the initial approval does not count? was it just a borrowing capacity estimate, do you actually get approved on the specific property?

On settlement, must I go with the original lender who gave me the pre-approval, or could I just go on and find another lender?

I am assuming that the deposit bond guys need a preapproval to last for the length of the construction period, is this right?

I thought I'd cut through the cr...p and ask questions, I have a limited knowledge unlike you fountains out there.

Regards
joojoo
'Thanks much'
 
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Reply: 1
From: Even Steven


The deposit bond and the deposit are two completely different things and probably would come from two different suppliers. A deposit bond is simply a guarantee that you will pay the deposit on settlement. The deposit itself and the finance to settle you can organise later however I think it would be prudent to get approval for all the finance before you put down a deposit bond.
Note: I am not a financial advisor nor a financial expert in any way so do not rely on what I say. Seek professional advice.
 
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Reply: 1.1
From: Joo Joo


Even or steven, thanks for your reply. as far as i see it you need a deposit to get the pre-approval, and you need the pre-approval to get the deposit bond, but i'm not sure if this is right
 
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Reply: 2
From: Property Investor


Joojoo,

I'm currently obtaining a deposit bond.
The requirements apart from the usual personal and financial details are that you must have equity 5 x the deposit amount.
On top of that depending on the time frame required for the bond, you will need to have a pre-loan approval in place. This is generally for a period of 6 months or less.
Shop around because there are differences in price and requirements.

It usually takes about 24 - 48 hrs to have the deposit bond finalised.

I hope this answers some of your questions.

Mannie.
 
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Reply: 2.1
From: Joo Joo


thanks mannie
 
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