Hi
I have another 2 short question about auction!
1. Can I go for auction and attend bid & offer before my home loan get approved? auction house usually not subject to finance, what can I do with home loan if I really want auction house?
2. Is it neccessay to make a building and pest inspection on auction house? If any problem been found during inspection, can I withdraw my offer on auction house?
Thank you
Jian
Question regarding Auction!
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
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Re: Question regarding Auction!
Hi Jian welcome back
1. Yes you can bid and win an auction without having your finance approved however it is not recommended. If you can't qualify for a loan then you could lose your deposit and be sued by the vendor. The ideal solution is to get a pre-approval which is only subject to a valuation as this reduces your risk significantly.
2. For an auction you should get your pest and building inspection completed prior to the auction. Unfortunately if you don't win the auction then you've paid for the inspections without gaining anything from it. For this reason sometimes the vendor will organise a pest and building inspection which they give out to all of the purchasers.
Thanks
1. Yes you can bid and win an auction without having your finance approved however it is not recommended. If you can't qualify for a loan then you could lose your deposit and be sued by the vendor. The ideal solution is to get a pre-approval which is only subject to a valuation as this reduces your risk significantly.
2. For an auction you should get your pest and building inspection completed prior to the auction. Unfortunately if you don't win the auction then you've paid for the inspections without gaining anything from it. For this reason sometimes the vendor will organise a pest and building inspection which they give out to all of the purchasers.
Thanks