We often speak to clients who say they have an “offer” from another lender.
Typically this is nothing more than indicative terms and really should not be relied upon.
Most lenders will follow the following process:
- Initial meeting
- Follow up with indicative terms
- If you accept they will submit to their credit team for a decision (this is the first hurdle where things can fall down)
- They will then offer an offer subject to survey
- If you accept they will conduct an onsite survey/due dilligence
- This survey is submitted to the credit team (this is the second hurdle where things can fall down)
- From here they will issue legal documentation
- Even then things can fall over when they conduct searches or when they do an inter factor reference if you are transferring from another lender
It is important to understand what constitutes an offer and what you should and should not rely on.