2_Guide to Formal Loan Approval_Factsheet 2_

Step 2Guide toFormal LoanApproval

Your guideto Formal LoanApprovalBefore we can start building your new home, we A Formal Loan Approval is typically a Letter of Offerwill need a copy of your Formal Loan Approval from your lender, confirming the details of your loan(sometimes referred to as an Unconditional Loan and advising that Mortgage Documents (sometimesApproval) from your lender, along with bank referred to as your credit or loan contract) will be sentstatements showing any monies that you are to you shortly. This will look different depending oncontributing over and above your loan. your lender, so don’t hesitate to ask one of our Finance Managers or Finance Consultants if youAfter the colour selection process, we will prepare need clarification.your building application and lodge this with therelevant authorities. We’ll then issue you with a Bank It’s important to note that regardless of the ‘look’ ofPack that you can provide to your lender and request your Formal Loan Approval, it will advise you of anythat they progress your Conditional Loan Approval to outstanding conditions that will need to be taken careFormal Loan Approval. of. The only condition that we will accept is that the lender receives a copy of the DA/CDC Approval orOnce they’ve received this, they’ll be able to review all DA/CDC Stamped Plans (we will send you a copy ofthe documentation, including your fixed price contract, these for you to forward on to your lender at a laterand undertake a valuation of your property to ensure that stage). If there are any other conditions, these will needit offers enough security for your loan. If it’s been more to be satisfied by you before we can start building.than three months since you received your ConditionalLoan Approval, they may also want updated financial To ensure a swift start to the construction of yourinformation from you. new home, please forward a copy of your Formal Loan Approval and bank statements to ourWhen we have your Formal Loan Approval and building Finance Consultant as soon as you have them.approval (which can take as little as two weeks if yourapplication is lodged under the Complying Development Don’t forget our Finance Managers deal withCode) we’ll be able to start construction of your home in construction loans every day and have access tojust a few weeks. Because a Formal Loan Approval can some great deals from many lenders, so they aretake up to two weeks to complete, it is important that you more than happy to save you the hassle of dealingprovide your lender with your Bank Pack as soon as you directly with your lender and organise all facets ofreceive it in order to avoid any delays. your loan for you. As added peace of mind, if you do choose one of our Finance Managers to arrange your loan, we also provide a Tender Expiry Guarantee. This can protect you from additional price increases under certain circumstances should there be delays in obtaining your finance. Conditions apply so please ask one of our Finance Managers for more details.

If you haven’t completed a loan application or If you would like one ofif you don’t have a Conditional Loan Approval our Finance Managers to arrange your financeYou will need to:1. Make an appointment to see your bank manager or broker You will need to:2. Collect all the required paperwork3. Complete your loan application 1. Complete a loan application4. Send a copy of the building contract to your bank or broker5. Follow up the receipt of the building contract with your bank or broker 2. Collect all your required paperwork6. Follow up your bank or broker for a Conditional Loan Approval7. Provide a copy of the Conditional Loan Approval to your 3. F inalise your colour selections and sign all variations to the building Finance Consultant contract8. Finalise your colour selections and sign all variations to the building OR 4. S ign and return your Mortgage contract as soon as possible to avoid delays in lodging your building approval Documents when you receive them9. Send the Bank Pack to your bank or broker with signed building contract10. Follow up the receipt of the Bank Pack with your bank or broker Then relax… we will take care11. Follow up the Formal Loan Approval from your bank or broker of the rest12. Send a copy of the Formal Loan Approval to your Finance Consultant as soon as possible to avoid any delays in the commencement of your new home13. Follow up the Mortgage Documents from your bank or broker14. Sign and return the mortgage documents to your bank or broker as soon as possible to avoid any delays in the payment of your first progress paymentIf you have a Conditional Loan ApprovalYou will need to: If you would like one of our1. Finalise your colour selections and sign all variations to the building contract Finance Managers to look into offering you a more as soon as possible to avoid delays in lodging your building approval competitive rate2. Send the Bank Pack to your bank or broker with signed contract3. Follow up the receipt of the Bank Pack with your bank or broker You will need to :4. Follow up the Formal Loan Approval from your bank or broker 1. Discuss your arrangements with5. Send a copy of the Formal Loan Approval to your Finance Consultant one of our Finance Managersas soon as possible to avoid any delays in the commencement of your new home OR 2. Complete a loan application6. Follow up the Mortgage Documents from your bank or broker 3. Collect all your required paperwork7. Sign and return the Mortgage Documents to your bank or broker as soon as possible to avoid any delays in the payment of your first progress payment 4. Finalise your colour selections and sign all variations to the building contract 5. Sign and return your Mortgage Documents when you receive them Then relax… we will take care of the restIf your Finance Managerhas arranged your financeYou will need to:1. Finalise your colour selections and sign all variations to the building contract2. Sign and return the Mortgage Documents to your Finance Consultant as soon as possible to avoid any delays in the payment of your first progress payment

NotesLet us take the hassle out of arrangingfinance for your brand-new home,contact:Greg Woolley Rebecca KuschertConstruction Finance Manager Customer Finance Consultant21 Solent Circuit Baulkham Hills NSW 2153 21 Solent Circuit Baulkham Hills NSW 2153T: (02) 8851 5416 T: (02) 8851 5310M: 0413 103 015 E: [email protected]: [email protected] 63 93Clarendon.com.au