Congratulations on finding your dream property, Howard.
The bank won’t allow for the increased amount. In this case, you need to apply for the loan again as the loan amount is more than what the bank has pre-approved. So, you have to submit your loan documents to your bank or mortgage broker.
It’s always good to know the differentiation of a pre-approval and final approval.
A conditional approval or pre-approval will allow you to start house shopping but you will only receive your funds once you have the final approval in your hand.
On the other hand, an unconditional loan approval implies that the bank has accepted the property you’ve found. You can sign the Contract of Sale with the seller and you’re on your way to settlement.
In this case, you need to apply for the loan again as the loan amount is more than what the bank has pre-approved. So, you have to submit your loan documents to your bank or mortgage broker.
Cheers,
Will the bank accept increased loan amount in a pre-approval?
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: Will the bank accept increased loan amount in a pre-approval?
Hi Howard,
We can’t say for sure. They’ll need to calculate your borrowing power again because of the increased loan amount, and if you can meet the increased liability and can provide a larger deposit, then they’ll approve your loan (subject to property meeting their lending policy)
Additionally, you need to factor in the other additional costs of buying a home including stamp duty, mortgage transfer fees, conveyancing and legal fees and Lenders Mortgage Insurance (LMI).
The secret to getting a home loan now is to apply with a suitable lender. To know which lender is suitable for you, call us on1300 889 743 or enquire online.
Cheers,
We can’t say for sure. They’ll need to calculate your borrowing power again because of the increased loan amount, and if you can meet the increased liability and can provide a larger deposit, then they’ll approve your loan (subject to property meeting their lending policy)
Additionally, you need to factor in the other additional costs of buying a home including stamp duty, mortgage transfer fees, conveyancing and legal fees and Lenders Mortgage Insurance (LMI).
The secret to getting a home loan now is to apply with a suitable lender. To know which lender is suitable for you, call us on1300 889 743 or enquire online.
Cheers,