Last Friday I received a call from existing clients. We had been speaking over the last 6 months as they were looking to buy another investment property. On Friday they let me know that they had signed a contract yesterday with a 7 day finance clause (which means we are down to a 6 day finance clause)! After the weekend we will be down to a 3 day finance clause.
I have worked with these clients before but I do not have any of their updated documents.
Could I make this work for them? YES! This is my speciality – writing loans and getting them approved before the finance clause. Nothing like a challenge the week before Christmas!
What did we do? We reviewed their existing loans and then looked at what they were looking for. Their key objectives
- Keep it simple
- Quick approval turn around
- Potential for discount on the interest rate
We picked the loan product together and then I got to work preparing their loan application. Within a couple of hours I had the application form ready for them to sign and had ordered the valuation plus got them a discount for their new loan. While I was getting this discount I also went to their existing lenders and seeked a discount on their existing loans. Both discounts were approved!
The application has been lodged and we expect the valuation back this afternoon. We have 2.5 days to get our approval. It is a strong application so I am very optimistic we will have the approval before the finance clause is up!
During this application I have been in contact with the real estate agent letting them know where we are at in the process of the loan application. I also let them know that 7 day finance clause is a unreasonable time frame.