Loan offer reduced

T

tafad

Registered User
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Hi need your help here. i got a an offer in principle for 350k and found a property that i want to buy at 400k from plans, having saved the difference. The loan offer has come at 320k broker is saying the valuation report was less than selling price so lender can give only 320k at the moment. Broker is insiting that i sign contract forms and loan offer and says when house is complete we can get a revaluation and possibly get a loan offer of 350k. I am really puzzled as i think if i sign loan offer now i may loose my deposit if loan offer is noy reviewed on completion and it remains at 320k and cant possibly raise the 30k differance. Please advise
 
tafad said:
The loan offer has come at 320k broker is saying the valuation report was less than selling price so lender can give only 320k at the moment.
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So the valuer is saying that this place is not worth 400K.Eh,does this not tell you something ?

tafad said:
Broker is insiting that i sign contract forms and loan offer and says when house is complete we can get a revaluation and possibly get a loan offer of 350k.
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Is the broker buying this place or you ?

From what you have said the broker only seems interested in his commision, i would not take any advice from him as he is not acting in your best interests !.
 
If you sign the contract your deposit is probably non refundable.
IMHO there may be at least 2 further interest rate rises,in that senario unless you have a big pay rise coming you are likely to be offered less money down the road not more.
The broker is supposed to get you a loan that's all,from what you've said i think he may have a relationship with the builder.
 
So if i where to look for another house within the new limit, 320k. Do yu think it would be expensive and time taking.
 
Regardless of the house,do you know what you are actually approved for ?
Your loan will be based on what you can afford,not the price of the house !.

Are you in some mad rush ? Apart from a valuer/surveyors report there shouldn't be any other expenses.Once you know how much you have to spend,it's up to you how quickly or slowly you proceed i presume !. It's a buyers market at the moment.
 
Not in a mad rush really. I have no other independent person i was speaking to. most of advice was coming from broker and most of my freinds are foreigners who have little knowledge about buying a house here. Broker told me amount approved in principal was 345k. but i did not dee the letter.
 
Be very careful of what the broker is trying to force you to do. I agree with the other poster that he is just interested in his commission. The bank have probably got good reason to realise that this house is no longer worth 400k. Why not have a chat with the developer and tell him you can't get the original amount loaned to you. You never know he might come to some sort of accommadation with you.
 
tafad said:
The loan offer has come at 320k broker is saying the valuation report
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What valuation report carried our by whom? Are you sure that this is not a reinstatement valuation report?

Have you considered shopping around for another lender and/or broker?
 
A lot of estate agents will want to see your loan offer on paper,get it off the broker.It should be irrelevant to him where you purchase the property,if you are a loan approved "cash buyer" you should be able to strike a good deal. Find somewhere you like,don't just buy anything !.
 
Broker had given me impression that if i look for another property it would take time to get another loan offer and also some other fee charges
 
tafad said:
Broker had given me impression that if i look for another property it would take time to get another loan offer and also some other fee charges
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What fees?

On the face of things it sounds like you might be getting a hard sell here.
 
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