Two Pre-Approvals for new IP - Any issues in accepting both?

[MSB]

I have a question with regards to pre-approvals for my next IP.

I have pre-approvals from both a credit union and non-bank lender with 95% LVR + LMI. When the second lender inquired CRAA they have mentioned about the inquiry from the first lender.

I wanted to make use of both pre-approvals so that I can buy two IPs with 5% deposit + purchase costs.

My question is, if I buy IP1 with Lender 1 within the pre-approval period, would lender 2 know about this purchase if I approach lender 2 for IP2 (again within the pre-approval period) ?

My think is go with a H&L deal with Lender 1 and get the unconditional finance. Then in couple of months time (before settling Land for IP1 with the other lender) buy another H&L or established home and go with Lender 2. When IP2 contracts are submitted to lender 2, would lender 2 make new inquiries (CRAA or some other agent) to check whether I have obtained unconditional finance from any other lender?

Also how long CRAA keeps records of the latest inquiries? Would they tell a new lender if the last inquiry was more than 6 months?

Thanks in advance to shed some lights with this concern.

 

[Propertunity]

When IP2 contracts are submitted to lender 2, would lender 2 make new inquiries (CRAA or some other agent) to check whether I have obtained unconditional finance from any other lender?

No, the CRAA will not tell of them that. It just lists an enquiry - not an acceptance or a decline.

Also how long CRAA keeps records of the latest inquiries?

10 years from memory (I checked mine the other day and it had enquiries from 1999).

Would they tell a new lender if the last inquiry was more than 6 months?

Yep.

Thanks in advance to shed some lights with this concern.

The issue you have, is that the pre-approvals were given on the assets & liabilities and income etc that you provided at the time of your recent application/s. To take out a loan with lender #2 after already taking out a loan with lender #1 and not telling lender #1 that you have since incurred more debts (and assets) is financial fraud

Look, you may still qualify for a loan with lender #2 even with the loan from lender #1 having been taken out. So, if you are doing full doc loans you need to tell 'em everything.

 

[Rolf Latham]

fraught with danger really.

When converting the second AIP to full, u will have to declare the first as has already been said

if you dont, then you may find depending on the lender, you will get a tap on the shoulder saying................our mortgage insurer tells us you have a loan approved already, whats going on ?

Prop, even with lo doc loans you need to bare your soul.

ta
rolf

 

[joycenmat]

You can't argue with sucess. I would follow the lead of advice given above.

Buy one and then go back and buy another.

 

[MSB]

Thanks for all the advice. After buying IP1 with one of the lenders, I will tell the other lender about the new purchase and they can assess the assets and liabilities again. Why should I get into unnecessary trouble!