5 Smart Tips for when you need your loan to settle FAST
A typical loan application can be expected settle anywhere from about six to ten weeks, depending on the complexity of the application. But if we are being brutally honest, most applications are tending to settle on the later side of the spectrum in this current banking climate.
With extensive documentation requirements along with added scrutiny by banks of all facets of an application, it’s no wonder we are seeing extended settlement timeframes. However, some applicants may require a quicker than normal loan settlement due to extenuating circumstances.
Here are some handy tips to consider when getting your application through fast is a priority
Does the lender allow Upfront valuations?
Not only does the ability to order a valuation prior to loan submission allow for an accurate equity position to be ascertained straight away, it also speeds up the assessment process by not having the added step of a valuation completion requirement.
Many lenders have this feature available to brokers but not all do, so check to see if your valuation can be obtained prior to the application being lodged.
What is the lender’s current service level?
Each financier has their own current service level times with some taking significantly more time than others. From two business days to ten business days, and sometimes beyond, the time in which different banks will be likely to pick up your deal can vary exponentially. If a speedy settlement is a must, find out which bank has an efficient service offering.
Do you have the correct documentation ready?
Your broker will give you an often-extensive list of documentation that is required so ensure everything needed is available. Make sure bank statements presented are within the date ranges requested, your pay slips and other income documentation is up to date, your identification is correct and current, and any other mandatory items are forwarded promptly.
Is the mortgage assessment and document certification done locally?
There are many lenders whose mortgage assessment centres are located offshore or interstate. Whilst this is not as limitation in itself, it does create delays for applications that have originated in WA due to time differences. The ability for the broker to be able to call the assessor direct is a life saver for particularly complex scenarios. Furthermore, being able to hand deliver loan documentation speeds up the settlement process by removing the unknown quantity that is Australia Post.
Does the lender allow loan documents to be emailed to the broker?
A relatively new feature available with most lenders, brokers can now print mortgage documentation for their clients, with some banks issuing the docs almost as soon as the formal approval is granted. This eliminates waiting for docs to arrive in the mail, particularly for those banks who would normally post them from the eastern states.
When your loan needs to be settled quickly and efficiently there are considerations when choosing a lender. To ensure you are able to meet your deadline, ask your broker which lenders have the processes and service levels that can process an urgent application quickly.