Off Plan or Prolonged settlement present lending risk to borrowers.
Put simply, whilst pre-approvals provide initial comfort, they are only based your current circumstances. With many of these transactions are due to settle at a much later date, a change in any circumstances (Lender or Borrower) could present issues that may affect your borrowing ability. Some of these could include:
1. Change in personal circumstances - employment, savings, family growth;
2. Lender Policy changes - servicing rates, risk profiles;
3. Property Valuations.
Many of these are outside the borrowers control and can have a major impact on the ability to secure finance.
This means it is important to obtain the right lending advise in order to understand what some of these issues are and how to mitigate if required.