All Topics / Finance / Who approves the loan?

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  • Profile photo of grant7grant7
    Member
    @grant7
    Join Date: 2006
    Post Count: 59

    Hi All,

    When u apply for a loan say thru the main 4 banks and u deal with a ‘lending person’ at a branch do they have authority to approve the loan? Or is it up to a third party somewhere else, ie. is all they do collect paperwork and pass it on?
    Is that the same for the other smaller lenders to?

    Then in the case where the loan requires MI if the lender is happy with the loan can they approve it or is it still up to the MI?

    Thanks
    Grant

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Some branch managers used to have, and maybe still do, the authority to approve loans up to a certain level of LVR and amounts.

    These days, data is entered and the loan is usually approved by computer. If rejected, then it may be manually assessed. There may be some slight discretion, but not much usually.

    Some lenders have LMI people actually sitting in their offices, and once the loan is approved by the bank, it must then be approved by the LMI person – if LMI is applciable

    Terryw
    Discover Home Loans
    Parramatta
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Terry is right although the lending discretions for most Front End managers is very low and you wouldn’t get far with they can approve.

    Most of the bigger loans go up the line for assessment either manually or through online credit scoring.

    Richard Taylor
    Residential & Commercial Finance Broker
    **NODOC loans from 7.14%**
    Licensed Financial Planner
    http://www.yourstatefinance.com
    [email protected]
    Ph: 07-3720 1888

    Richard Taylor | Australia's leading private lender

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