Among the many aspects of the right home loan for your client, zeroing in on a product with the right turnaround time is crucial. Despite a competitive rate and some excellent loan features, a home loan that isn’t processed in time for the borrower to make a property purchase results in wasted time spent on a deal as well as a disgruntled customer. Here are some steps that could help with managing the turnaround time of a loan application
- Timely Documentation
Prepare your client for all documentation needed. Work on a list
- Identification Proof: Driver’s license, Passport, Government-issued identification etc.
- Income Proof- payslips, bank statements and for self-employed Pay G, Business Activity Statements
- Living expense: this includes invoices of monthly payments like rent, utilities, insurance, vehicle expenses, childcare, credit card payments etc.
- List of assets: Property, stocks, shares, savings
Invest time in explaining to your clients why this documentation is needed, the easiest way to secure them and their significance in the loan application process.
- Correctness & completeness of paperwork
Make sure all documents you receive are
- Accurate and
- Up to date
An important tip here is to manage your client’s expectations. For example, certain circumstances may need more paperwork. Like
- Self-employed individuals
- Uncommon Home Loan Needs
- Non-standard ownership: Unusual property split among home loan applicants like 80/, 40/60 (anything that isn’t 50/50)
- LMI Waiver: Due to govt scheme or home loan applicant’s profession (Lawyer, doctors and accountants enjoy LMI waivers from some lenders)
- Equity from Multiple properties: Using equity from multiple properties as collaterals
- Strategies to strengthen your client’s application
A more robust loan application usually results in a shorter turnaround time. Based on your clients’ circumstances, work on a strategy that could strengthen their application. Given are some approaches that you could be considering discussing with them
- A larger deposit: If your clients can put forth a larger deposit, they appear to be less of a risk and will have a stronger application that is likely to be processed quickly.
- Use of equity: Check on your client’s property ownership and is willing to use property equity as collateral for the application process.
- A Guarantor: If your client is struggling with collecting sufficient funds for a home loan advice, explore the possibility of a guarantor.
- Low or no debt: If your client is a good saver, consider leveraging genuine for a stronger application.
- Higher Debt to service ratio: A significant income with comparatively small repayments boost your client’s application
- The right lender
Despite ticking all boxes on your checklist, a lender with a higher than industry average processing time is likely to cause delays for your client. In addition to getting all your paperwork right and submitted on time, it is equally important to pick the right lender. At Resi Home loans, thanks to our industry-leading in-house credit service team, our SLA is generally just three days, along with a straightforward application process.
To know more about RESI, click HERE to reach us for a discussion.