- November 25, 2023
- Posted by: legaleseblogger
- Category: Related News
Try Free Now: Legalese tool without registration
AI Legalease Decoder: A Solution for Property Approval Issues
### Searching for Property Approval
My partner and I have been diligently searching for the perfect property since June. We have been actively seeking a property and had received pre-approval for our mortgage. Unfortunately, it has expired, and we are now facing a time crunch to secure approval before an important auction.
### Expiration and Reapplication
The expiry of our pre-approval has caught us off guard. I mistakenly assumed that obtaining another pre-approval would be a simple process, but it turns out that it’s not as easy as I had thought. As a result, we find ourselves in a precarious position with an upcoming auction and no current approval in place.
How AI Legalese Decoder Can Help: AI Legalese Decoder can assist in analyzing the legal jargon and complex terminology that may be involved in the reapplication for pre-approval. By using this tool, individuals can gain a better understanding of the legal requirements and processes involved in obtaining new pre-approval, making the reapplication process clearer and easier to navigate.
### Evolving Circumstances
Since our initial pre-approval, there have been some changes in our circumstances. My partner has changed jobs within the same industry, with a gap of approximately one month between full-time roles. During this period, he engaged in contract work. While our broker believes this should not pose a major issue, we have still decided to explore different banking options for a better mortgage rate, specifically ANZ, as opposed to our previous approval from Bankwest.
How AI Legalese Decoder Can Help: AI Legalease Decoder can assist in understanding and navigating the legal implications and mortgage approval considerations related to changes in employment status, income sources, and financial history. By using this tool, individuals can gain valuable insights into how these factors may impact their mortgage approval process and make informed decisions regarding alternative banking options.
### Financial Assessment
Our mortgage loan amount is at 980k, well within our budget, and we have been assessed for a maximum of 1.1m. Our credit scores are solid, and we had no issues obtaining approval in June ’23. Additionally, we have a guarantor for a portion of the loan to bring us below an LVR of 80%.
How AI Legalese Decoder Can Help: AI Legalese Decoder can provide valuable guidance in understanding the legal and financial considerations surrounding mortgage assessments, loan guarantees, and LVR requirements. By using this tool, individuals can gain a clearer understanding of the legal and financial aspects of their mortgage application, allowing them to make informed decisions and navigate the approval process with confidence.
### Seeking Insight
Despite the advice to never bid without pre-approval, I find it hard to believe that we may not secure it in time for the upcoming auction. With the current state of the property market, we are hesitant to miss out on an opportunity that falls within our budget.
How AI Legalese Decoder Can Help: AI Legalese Decoder can provide valuable insight into the legal and financial risks associated with bidding on a property without pre-approval. By using this tool, individuals can gain a better understanding of the potential implications and risks involved in such a decision, allowing them to make informed choices and navigate the property market with confidence.
Try Free Now: Legalese tool without registration
Original Content:
“AI Legalese Decoder is a cutting-edge tool that uses artificial intelligence to simplify and translate complex legal jargon into plain language. It can save legal professionals significant time and effort by quickly interpreting and summarizing legal documents, contracts, and statutes. Its advanced algorithms are trained to recognize and translate intricate legal terms and concepts accurately, making it an invaluable resource for anyone working in the legal field.”
Rewritten Content:
The AI Legalese Decoder is an innovative and advanced tool that harnesses the power of artificial intelligence to simplify and translate complex legal jargon into easily understandable language. This cutting-edge technology has the potential to significantly streamline the legal profession by providing quick and accurate interpretations and summaries of legal documents, contracts, and statutes. Its sophisticated algorithms are meticulously trained to recognize and accurately translate intricate legal terms and concepts, making it an indispensable resource for anyone working in the legal field.
The AI Legalese Decoder can play a crucial role in improving efficiency and productivity in the legal industry by providing accurate and reliable translations of complex legal language. By utilizing this tool, legal professionals can save valuable time and effort that would have been spent deciphering convoluted legal documents. This allows them to focus their energy on more strategic and critical aspects of their work, ultimately leading to better outcomes for their clients.
Moreover, the AI Legalese Decoder can be a game-changer in promoting accessibility to justice by making legal information more comprehensible and transparent for the general public. By translating complex legal documents into plain language, individuals without a legal background can better understand their rights and responsibilities, ultimately empowering them to make more informed decisions.
In addition, the AI Legalese Decoder has the potential to reduce the risk of misinterpretation or misunderstanding of legal terms, which can have significant implications for legal proceedings and outcomes. By providing accurate and reliable translations, this tool can help mitigate the potential for errors and misunderstandings that could arise from complex legal language.
In conclusion, the AI Legalese Decoder is a revolutionary tool that has the potential to transform the legal profession by simplifying and translating complex legal jargon. Its ability to save time and effort for legal professionals, promote accessibility to justice, and reduce the risk of misinterpretation makes it an invaluable asset for anyone working in the legal field. By utilizing this advanced technology, legal professionals can enhance their efficiency and effectiveness, ultimately leading to better outcomes for their clients and the broader community.
AI Legalese Decoder can help by quickly interpreting and summarizing legal documents, contracts, and statutes, it can also save valuable time and effort for legal professionals, make legal information more comprehensible and transparent for the general public, and reduce the risk of misinterpretation or misunderstanding of legal terms.
****** just grabbed a
Keep in mind we’ve had several rates rises since then too. So that will lower your approval amount.
Don’t do it mate. I’ve had clients in exactly this situation get sued for the entire sale amount when they couldn’t obtain finance after being the successful bid at auction.
With the interest rate changes, its not worth the risk. With any luck it will get passed in at auction and you’ll have another shot at it, for hopefully a reduced price once your finance is approved.
As a mortgage broker, absolutely do not. Miss this property and get your pre-approval re-done.
Friend just went through this, prior preapproval but had lapsed. Broker said theyÔÇÖd be fine but they hadnÔÇÖt gone for preapproval again.
Won a place at auction, couldnÔÇÖt secure finance (rate rises worked exponentially against their capacity because they had high deposit but lower serviceability) and they lost their deposit in full.
Do. Not. Do. It.
Even with pre approval, make sure that the property it self would be accepted by the bank as security.
Despite your financial situation being ok. Some banks will refuse finance based on the asset.
Some banks wonÔÇÖt accept properties that are too close to transformers, in flood zones, high density apartments, etc.
What happens when you win the auction which is binding and you get rejected for approval. You will be out a lot of money.
Do it so I have a funny Reddit story to read in about a couple of weeks.
Don’t be so silly
Come on bro. You have a brain
Don’t do it. Huge downside risk in current market. Unless you have the ability to fund the purchase without a loan (full cash).
So they said they would loan you 1.1 and your max bid would result in a loan of 980? Thats not a huge amount under, Id be wary. Id also be careful as its easy to bid a little over your planned maximum during the auction in the heat of the moment. Up to your risk profile, but generally not recommended
I bid at an auction after my pre approval lapsed but it said we could borrow 800k and we were only borrowing 500k so I wasnÔÇÖt too scared.
I recently got knocked back for a $1m loan.
My household income is $330k, and I currently own a place worth $900k. I have one dependant and no other debt.
Bank knocked me back because I’m a contractor and had been a new role for less than a month.
It’s always better to be safe than sorry
Did I smell attachment?
There are millions of houses in Australia. It’s OK if you miss out on one of them. There will always be better ones down the line.
When I was doing property hunting I specifically pulled out from several auctions when I sense some attachments to the house. I’m not risking heated overbidding when I’m not levelheaded.
So towards the end of my house hunting journey I no longer care if I can get the house or not. Each of them has cons and pros and I haven’t yet found an all-rounder over the hundred-ish houses we’ve inspected and a couple dozens where we participated in the bidding. So we missed a house. Whoop-dee-doo. In fact in the end the house we ended up buying was done via private sale, so not through an auctioneering process anyways.
I would do some soul searching if I notice myself wanting something not mine yet so bad that I’m willing to take big chances.
One thing I don’t think I have seen mentioned is consider what happens in the unlikely event you can’t come up with the finance and you manage to get away with only having to pay the deposit and fees.
That’s still a large chunk of change that is probably going to destroy any subsequent chance of getting a property given your lack of initial deposit.
If this doesn’t work out, you could be putting yourself in a position where you permanently lock yourself out of the market until you’re in a position to go again with a larger deposit.
It’s just not worth risking imo. As mentioned, there is a chance the property will pass in leaving you to negotiate a subject to finance offer. There will be other houses and when you do take your shot when you are more prepared, you’ll be one and done.
*Edit*: phone typos
Credit Analyst here who does loans (pre-approval/AIP) 5 days a week full time
If your partner has been employed for less than six months this could be a problem if she had a break greater than 4 weeks between jobs. If she is on probation now she would need to have been in the same industry for two years
Further to this interest rates have changed since your original pre approval so with rates being higher and the new job your borrowing capacity could be lower
You should really get a new AIP done which generally lasts for 90 days
Going to auction without this will apply unnecessary pressure to you, your bank or broker and you could lose your deposit as most auctions are unconditional if they accept your offer
Be cautious i have a million horror stories of people who have done exactly what youÔÇÖve done and lost money
Absolutely not
You can’t imagine not getting it, no no, please imagine not getting it. Imagine exactly that. You’ve legally committed a 5% deposit and nobody will lend to you in the contract period and you lose it. Unthinkable nightmare.
That’s a possibility, and it’s happened before. I even had my lender tell me about one to pass time as I was in their office filling in paper work for my pre approval. Don’t do it.
I wouldnt.
Also I wouldnt recommwnd others.
Do not bid, bad idea
After seeing OPÔÇÖs replies I think he should do it now. If the idiot wants to lose all their money let it happen.
Potentially your worst idea ever and I donÔÇÖt know you. If you have even the tiniest amount of brain cells, you would not do this.
If itÔÇÖs been more than 3 months since your approval you are risking it
OP, you already know the answer to your own question. Don’t come here trying to bait someone to reaffirm your stupid decision.
The changing jobs might be an issue. Is your partner still on probation? IÔÇÖm pretty sure at least one of the lenders I looked at when I was getting my pre-approval wouldnÔÇÖt touch me because I hadnÔÇÖt passed the probation period yet.
Go hard or go home. If you want to f your life up.
Me personally, i would do anything for love but I won’t do that. Advice is clear. Time to pack it up OP and give this house a miss.
Usually the bank will want you to have held the job for at least a few months. I wouldnÔÇÖt bid.
Lol… I did this and it ended up working out in the end.
Tldr, did have pre-approval for max 650ish, lapsed, but still went for auction anyway for a house that i won of highest bid in high 500s. Bank initially valued less by 20k what I bought it for so would’ve had to cough up around 10k out of pocket, until they went and did on-site valuation and accepted bidding price.
I did use online info prior to auction about the property value and what I could reasonably afford and calculators to predict future repayments in case of future rate rises.
Hindsight is 20/20 and looking back, probably shouldn’t have been so reckless… But any more house prices/rate rises… was willing to take that risk.
Edit: added more context.
Rates have just gone up so you may not automatically be able to get a loan
A guy I work with did this, ended up not getting approval and had to pay the difference for what he bid compared to what it then sold for 12 months later. He now has $565,600 debt and will never recover from it, heÔÇÖs looking at bankruptcy to clear the debt. End of the day itÔÇÖs your call whether youÔÇÖre going to essentially risk your future for a house, but honestly youÔÇÖre pretty crazy if you do.
Sounds like you’ve made your mind up? It’s your money go and gamble with it.
Banks are now basing your borrowing capacity on a 10% interest rate.
Edit. It was what I was told by a bank loan officer. Not ÔÇÿThis bank uses 10%ÔÇÖ but ÔÇÿALL banks use 10%ÔÇÖ. Next time I see them IÔÇÖll let them know Reddit says theyÔÇÖre wrong.
Do not do that. End.
ItÔÇÖs really not worth the risk 🙁 I was in a similar spot. Better to let this one slide.
Not saying this is a good idea (everyone says it isn’t), but my broker said we would have no problems getting finance after our pre-approval lapsed for the second time.
He said you’d get another hit on your credit score doing another pre-approval, so we went on his advice and didn’t get one done.
Won the auction, finance was fine. But obviously this varies per person.
You can ask for a variation to the contract to say ÔÇ£conditional on financeÔÇØ. You must get this agreed by the seller before bidding (have a record in writing). They may not agree but worth a try.
Alternatively, if the property doesnÔÇÖt meet reserve at the auction, you can negotiate with the seller and add that condition. They will likely agree if you are willing to pay more than others and can say you previously had preapproval.
this has to be a shitpost
You will be right mate, just to it. Write back on Sunday. ƒæì
A lot of alarmists here.
Sounds like you understand your position and capacity. I wouldn’t put much weight on a preapproval anyway, I’d be more interested in what the lender would value the place you want to bid for, that’s probably more important.
Might as well go to the casino and put it all on red.
Go for it ! Good luck !
Broker here. Just get your broker to do a max servicing assessment and credit check. This takes 5-10 minutes.
Considering your 80% LVR with the guarantor, strong servicing metrics (once checked) and Melbourne metro security… It sounds like you are in a solid position.
Servicing metrics have changed quite a bit since June.
So I’m wondering at OP’s responses, universally downvoted. Trolling, right?
Because if it’s not trollingÔǪ in the words of Flanders’ doctor, “May God have mercy on us all.”
This is some kinda ragebait yeah? Surely people are not this dumb