Hi all,
In a predicament... thought I had to just put a $2k deposit down for a new estate.. getting in stage 1 so keen to settle even though it's not the most ideal lot (don't know the future and what future releases hold so taking the plunge) I'm thinking of settling this sunday.
Initially lodged my interest for lot #'s with no finance preapproval and 'subject to financing' as my context, still got allocated the eventual lot... and upon questioning/phone conversations i swear all I needed was a $2k deposit. First home buyer so in my naiveness perhaps, thought all I do is sign, pay a $2k deposit and then find myself a loan in the meantime between now and settlement when deeds are issued oct 15'ish.
Agents been busy all round the clock.. finally got an answer out for an appointment this sunday as she can't hold the lot much longer... fine by me but was thrown in at the end of her email that pre approval copy is required.. say what?!?!
So few questions, given the urgency (tomorrow being saturday - are banks even open to conduct pre approvals) i would appreciate answers asap and any further detail to help a newbie out:
1) Can i get pre approval on a saturday... before signing on sunday lunch? Are only certain banks open? And if so which ones can i head to?
2) Linking on from 1) my initial intentions were to either find a so called good mortgage broker (first time, so again I just want to find the best person with my best interests in mind and obviously their success to follow) and then hunt out the best loan....Given that can I apply for pre approval somewhere, get it, secure the lot, then still find another lender for the final settlement?
Or does pre approval lock you in to using that bank for settling? Or is that up to your sales contract?
3) Suggestions as to what banks or lenders are the go to these days... saw in this thread: (http://somersoft.com/forums/showthread.php?t=106753) that many have multiple banks.. so i assume they must vary quite abit... my initial requirements are - but then I am new to property so please advise if I should consider other loan features or aspects down the track:
a) Ability to park additional money into an offset account, preferably at no cost (bankwest quoted $9/month for this ability, is this normal?)
b) ability to park as much additional cash, as soon as I want (e.g. day 1 after loans taken out) into the offset.... ability to therefore withdraw any and everything in full for future investment or cash flow needs.. is this acceptable norm?
c) Lender with a great, competitively low variable interest rate.
d) Lender with stability in low rates - no use going a low rate lender now if they're known to then leave rates on hold while everyone else drops in the future... RElying on people's experiences and reputation here
e) Other fixed or once off costs: What can I expect?? And preferably a bank that gets rid of the nonsense fees or charges, and just gets down to a competitive variable rate without the hidden this and that
Context:
Perth based
LVR: Looking at 295k block of land, about 25-30k cash deposit now.Settlement being oct 15 when title is issued means that my first home savers account unlocks as a normal cash account. This will free up another 45k, my intention was to access this from the 1 July 2015 rules changes therefore. Ultimately I want to avoid LMI.
Informal borrowing check by bankwest every so often: I'm currently slated for about 490,000 borrowing capacity. Previously 570k, but a $10k drop in income from losing a FIFO allowance has basically shaved off $80k... surprising bummer. So to me the issue is more of where do I get pre approval in such a short unplanned notice, rather than not being eligible for lending.
Property - looking to live in it for 6 months, get the FHOB grant, stamp duty, then rent it for a few years before deciding to sell up for a profit, or continue renting. Ideally if rent continues to cover I'd be happy to pay it down and build passive income. It's in the Piara Waters growing south eastern corridor suburb, so i anticipate alot of rental stock etc. and hence I didn't think rental would be too lucrative and a sale might be the way a few years down the track. I don't quite understand leveraging but then hoping the offset account will allow me to withdraw for future equity deposits on new lots...
Is there any reason to use a redraw over offset account? I know redraws are messy for investment purposes /interest deductbility, hence I saw no other reasons to use a redraw, with offset allowing you to plough as much as you want in and take as much as you want back out, whenever you want, correct?
Hope that's provided enough info.... would really appreciate a thorough response to all points above... Ideally I'll have to wake up tomorrow morning (Saturday) then act on any advice here.... e.g. head to xxxx bank, get pre approval given all I have is the day. Again I stress - can I get pre approval in the interest of time, sign, then take my time over coming months to find a proper, good loan prior to settlement, and subsequently change lender? Not sure what the norm is when settling contracts on new land.
What should I bring along to speed a pre approval up if I need it done same day/before tom arvo? Pay slip? Is same day approval even required, or is it a lengthy, well evaluated decision?
I am an existing bankwest saver/customer - not sure if continuing a pre approval with them is beneficially faster?
Much appreciative of any advice and pointing me in the right directions. Thank you!
In a predicament... thought I had to just put a $2k deposit down for a new estate.. getting in stage 1 so keen to settle even though it's not the most ideal lot (don't know the future and what future releases hold so taking the plunge) I'm thinking of settling this sunday.
Initially lodged my interest for lot #'s with no finance preapproval and 'subject to financing' as my context, still got allocated the eventual lot... and upon questioning/phone conversations i swear all I needed was a $2k deposit. First home buyer so in my naiveness perhaps, thought all I do is sign, pay a $2k deposit and then find myself a loan in the meantime between now and settlement when deeds are issued oct 15'ish.
Agents been busy all round the clock.. finally got an answer out for an appointment this sunday as she can't hold the lot much longer... fine by me but was thrown in at the end of her email that pre approval copy is required.. say what?!?!
So few questions, given the urgency (tomorrow being saturday - are banks even open to conduct pre approvals) i would appreciate answers asap and any further detail to help a newbie out:
1) Can i get pre approval on a saturday... before signing on sunday lunch? Are only certain banks open? And if so which ones can i head to?
2) Linking on from 1) my initial intentions were to either find a so called good mortgage broker (first time, so again I just want to find the best person with my best interests in mind and obviously their success to follow) and then hunt out the best loan....Given that can I apply for pre approval somewhere, get it, secure the lot, then still find another lender for the final settlement?
Or does pre approval lock you in to using that bank for settling? Or is that up to your sales contract?
3) Suggestions as to what banks or lenders are the go to these days... saw in this thread: (http://somersoft.com/forums/showthread.php?t=106753) that many have multiple banks.. so i assume they must vary quite abit... my initial requirements are - but then I am new to property so please advise if I should consider other loan features or aspects down the track:
a) Ability to park additional money into an offset account, preferably at no cost (bankwest quoted $9/month for this ability, is this normal?)
b) ability to park as much additional cash, as soon as I want (e.g. day 1 after loans taken out) into the offset.... ability to therefore withdraw any and everything in full for future investment or cash flow needs.. is this acceptable norm?
c) Lender with a great, competitively low variable interest rate.
d) Lender with stability in low rates - no use going a low rate lender now if they're known to then leave rates on hold while everyone else drops in the future... RElying on people's experiences and reputation here
e) Other fixed or once off costs: What can I expect?? And preferably a bank that gets rid of the nonsense fees or charges, and just gets down to a competitive variable rate without the hidden this and that
Context:
Perth based
LVR: Looking at 295k block of land, about 25-30k cash deposit now.Settlement being oct 15 when title is issued means that my first home savers account unlocks as a normal cash account. This will free up another 45k, my intention was to access this from the 1 July 2015 rules changes therefore. Ultimately I want to avoid LMI.
Informal borrowing check by bankwest every so often: I'm currently slated for about 490,000 borrowing capacity. Previously 570k, but a $10k drop in income from losing a FIFO allowance has basically shaved off $80k... surprising bummer. So to me the issue is more of where do I get pre approval in such a short unplanned notice, rather than not being eligible for lending.
Property - looking to live in it for 6 months, get the FHOB grant, stamp duty, then rent it for a few years before deciding to sell up for a profit, or continue renting. Ideally if rent continues to cover I'd be happy to pay it down and build passive income. It's in the Piara Waters growing south eastern corridor suburb, so i anticipate alot of rental stock etc. and hence I didn't think rental would be too lucrative and a sale might be the way a few years down the track. I don't quite understand leveraging but then hoping the offset account will allow me to withdraw for future equity deposits on new lots...
Is there any reason to use a redraw over offset account? I know redraws are messy for investment purposes /interest deductbility, hence I saw no other reasons to use a redraw, with offset allowing you to plough as much as you want in and take as much as you want back out, whenever you want, correct?
Hope that's provided enough info.... would really appreciate a thorough response to all points above... Ideally I'll have to wake up tomorrow morning (Saturday) then act on any advice here.... e.g. head to xxxx bank, get pre approval given all I have is the day. Again I stress - can I get pre approval in the interest of time, sign, then take my time over coming months to find a proper, good loan prior to settlement, and subsequently change lender? Not sure what the norm is when settling contracts on new land.
What should I bring along to speed a pre approval up if I need it done same day/before tom arvo? Pay slip? Is same day approval even required, or is it a lengthy, well evaluated decision?
I am an existing bankwest saver/customer - not sure if continuing a pre approval with them is beneficially faster?
Much appreciative of any advice and pointing me in the right directions. Thank you!