Alan from the Teachers Credit Union came around last night, and we filled in the paperwork to sign our lives away for the next 40 years. Yes – 40 years, not a typo…
And just after midday today, he rang to say that the loan was approved (provisionally of course).
The two provisions are a) that my parents sign a stat dec that they will give us $X when the time comes (Mark’s parents have already given us their contribution). And b) that the valuation comes back around the amount that we have offered for the house.
Part a won’t be a problem. We’ll have the stat dec on saturday night (having dinner with the family for Adam’s 40th birthday). Part b could.
Here’s the thing. The property is considered to be “Flood Affected” in both a 100 year and 20 year chance. Which might mean that the credit union won’t give us a cent to spend on that property. Or, they might take into account that the block slopes towards the back, and the house itself is much higher than the level of the land.
If that is taken into account, they’d probably find that although the backyard may get wet every 100 years, the chance of water coming into the house are very, very small.
There is an open house scheduled for saturday morning. Although we have had our offer accepted, and the Credit Union is willing to give us a huge amount of money, the owners could still accept a higher offer at any moment – unless we give them about $1000.
But if we give them the deposit, and the credit union knocks us back, chances are we won’t get the money back.
So we have to decide whether or not to make a $1000 gamble.
In good news, the building inspection went well. Ron, a builder mate of Bev & Ted’s gave the place a thorough going over, and reckons that it’s a good buy for the price. So I think we’ll take the chance.