The trouble with old finance
The solicitor that was preparing the contract of sale and completing conveyancing on behalf of the empty nesters, had referred them to a specific bank with James and Annette believing that all the finance was all under control.
Unbeknown to James and Annette, the bank to which their solicitor had referred them had undergone a policy change and no longer offer SMSF loans to residential properties.
To their horror and the day before their finance was due, Annette received a call explaining that the loan application had been declined as the bank longer offered this product. The bank had their application for 2 weeks before responding.
Stressed, aggravated and obviously disappointed in the process Annette contacted Jaime to try and find a way through the obviously traumatic situation. Jaime offered to meet Annette at her workplace and go through the whole scenario. Annette explained that finance was due the following day, settlement was due in 45 days and finance had just been declined.
Annette was extremely nervous that they were going to lose the property and there could be extra costs charged against them. Jaime went through the process step by step and laid out the lending requirements with both James and Annette. A proposal requesting an extension of finance was prepared and Jaime set about preparing a new finance application.
Through her decisive action, Jaime was able to take the stress out of the complex process of purchasing an investment property through a SMSF. Acting on behalf of James and Annette, Jaime contacted the real estate agent, the conveyancer and successfully renegotiated the terms in the contract.
The outcome was superb… the clients were very pleased to have their finance approved and they were able to meet their 45-day settlement date. The key to achieving this outcome came down to Jaime being able to identify and select the correct bank that fitted the needs of the client…. not vice versa.