Loan Approval Procedure!

From: J Parker

This is really a question for all of you brokers and lenders out there..

Can someone outline for me, step by step, exactly what happens when I apply for a loan approval, given that my lender has given me the verbal OK? I am very curious as to why it takes so long.
I seem to be constantly chasing up my lender for info and updates, as nothing is getting done, and I am getting very nervous. If I had have settled on the planned date (instead I moved the date two weeks to accommodate my reno quotes- from a nine week settlement to an eleven wk one) my finance would not yet have been approved.
To help me appreciate the work that is involved, an informative response here would be greatly appreciated. (Rolf, HELP!!!!)
Cheers, Jacque :)
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Reply: 1
From: Patrick O Brien

As much as I hate to do it I have to speak in favour of the banks in reply to this question. Delays are typically caused by Mortgage Insurers and Valuers. If you are lending more than 80% LVR it is likely that the mortgage Insurer is sitting on the application. They have a tendency to do that. This is under the assumption that you still are yet to receive a written letter of offer from the bank. If you have signed and returned a letter of offer the delays could be caused by solicitor's etc. Your bank shouldn't have any problems in settling a loan over 11 weeks considering there are some banks who are able to do it in 10 days.

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Reply: 1.1
From: Sergey Golovin


You have been rambling about politicians for while, maybe it is good opportunity to give'm call and "suggest" to have look at mortgage insurance companies. How slow and greedy they are.

Even Prime Minister said that it is too rich for them to have that much.

Cut the grass down with ride on lawn mover.

And who is going to stop you folks anyway, all you have to do just ask.

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Reply: 2
From: Rolf Latham


It really depends on the lender. Most non bank lenders need to go to an additional process or two since they do require LMI on almost all loans. Some can be extremely proficient though in getting an unconditonal done in 3 to 4 days. As a rule of thumb I find the lower the standard variable rate, the slower the service.

Its amusing for example that ANZ who were really sad performers now have a 2 day turnaround, have swapped with Westpac who now have a 10 day approval process. in 6 montsh time this may again be reversed.

The actual process is straightforward, and if your deal is on top of the heap can be done end to end in one day if no val is required. I personally use the unconditional approval time as a general indication as to what to expect in the future - its sad when the lenders dont even look after their broker network.


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Reply: 2.1
From: Shaun Latham

The old bank manager is long and gone. Bank managers require the same level of qualifications as call center staff. The only difference is that call centre staff have more experience, they process 20 times more loans. You can can walk into several different branches of the same bank and get very different service and advice. I recently went into a bank which I had banked with for 10 years and asked what I could borrow. The answer was lower than what I expected. After some questioning, they hadn't factored in the rental income of the property I was buying! The bottom line is if you aren't happy with the service, shop around. Even within the same bank. They're all evil! But better the devil ya know.
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Reply: 2.1.1
From: Sim' Hampel

On 2/15/02 10:06:00 PM, Shaun Latham wrote:
> They're all evil!

Wouldn't go that far... incompetent perhaps (which is just as bad).

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