hello all my question is about the timing of getting a loan,
Preliminary stage
application stage
approval stage
settlement
how quick / long can these stages take?
Cheers, Tom
Anywhere between two weeks to two months.
Normally I analyse a clients situation and make a recommendation on structure and lender. I'll then order a valuation whilst they compile their documents. They then email or bring their documents into the office. I write the application – they sign and I submit. This whole part usually takes between 3 days to a week.
Bank issues approval within the week.
They issue loan docs, client signs and returns. They then prepare for settlement. Usually this all takes a couple of weeks.
So I'd say normal timing from start to finish is around a month – can be quicker if necessary and can be slower if we hit some hurdles along the way (most typical being loan docs going missing).
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
HI Jamie thanks for your reply i was wondering when you said that they compile their documents is this as in getting a pre-approval ready for you? or is that something different?
Also when you write the application do you mean you just fill in a application from the specified bank that you're trying to get the loan from or is there universal application forms you can use?
Cheers, Tom
Also how do you normally submit the documentation to the lender in an appropriate manner to protect client confidentiality?
Hi Tom
Each lender has their own application form.
Most loan applications are lodged online and then the supporting documents are emailed or faxed into the lender. All brokers and lenders provide you with a privacy statement which describes how your information will be used and stored.
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
oh ok, thanks Jamie!
Hi Tom,
When my clients are buying, I usually advise them to allow a minimum of 45 days settlement from date of signing the contract. That way I'm pretty confident that the loan will be submitted, approved, docs signed and returned, lender vetted, and settlement booked in time.
It can be done in a shorter time frame, however with Murphy and his laws abound, I tell them better to be safe than sorry, and the last thing they want is to be paying penalty interest.
In terms of privacy, with NCCP and the privacy act we brokers need to adhere to the regulations which includes blackening any tax file numbers before passing information on, storing hard copies in locked cabinets, etc.
Cheers
Tom
Hi PLC,
That's really interesting, Is there any other documents you might have to blacken out? and when you email them to the lender, which department would you email them to / contact?
Cheers, Tom
Also what other issues need to be addressed following a loan approval to assist with the loan settlement?
tom123 wrote:Hi PLC,That's really interesting, Is there any other documents you might have to blacken out? and when you email them to the lender, which department would you email them to / contact?
Cheers, Tom
Off the top of my head I cannot think of anything apart from tax file numbers. When you email the supporting documents for the loan application, the recipient is usually the lenders credit assessment team.
tom123 wrote:Also what other issues need to be addressed following a loan approval to assist with the loan settlement?This is where a decent conveyancer/solicitor gets involved and helps out. Legal documents to be prepared and submitted, title searches, adjustment of rates, etc.
Cheers
Tom
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