Did you know that roughly 80% of home loan assessment and approval delays are the result of missing documents? The great news is that you can drastically reduce the time taken to obtain your home loan assessment or approval simply by being organised and by trying to provide everything in one go. Taking the time to carefully follow the instructions on your Loan Document Checklist will help you to avoid sending through outdated or incorrect evidence and ticking off each item is a rewarding way to ensure you have completed everything that’s required. Here at My Property & Finance, we value your time, which is why we go to great lengths to ensure that your Loan Document Checklist is personalised to your specific requirements. In other words, we will only ever ask for documents that are absolutely necessary for your particular scenario.
When we get a new loan application underway, clients invariably ask us why it requires so much paperwork. The simple answer to that question is that these are the documents that the banks require us to provide. Going direct to the bank won’t make matters any easier either, since they require the exact same documents.
Of course, no-one in their right mind is going suggest that document collection is the world’s most stimulating activity. There are so many amazing things to do in life and riffling through a filing cabinet isn’t likely to be one of them. But as frustrating as it may be, it does serve an extremely important purpose. Essentially these documents help us gain a clear idea of your financial situation, which not only helps us to match you to the loan that’s right for you, but helps us to ensure that you can afford the repayments without placing you into financial hardship.
As finance professionals, we must adhere to Responsible Lending obligations. If we don’t have all the correct information upfront, then it’s impossible for us to fulfil these obligations in recommending the right product to suit your circumstances. Severe penalties apply for Australian Credit Licence holders who fail to meet their obligations under the national consumer credit laws. Such breaches can include fines, and/or suspensions or cancellations of the licence. Naturally, we take our responsibilities to you and to our business very seriously, which is why we are so fastidious when it comes to the paperwork that’s required.
Our goal is to ensure there are going to be no nasty surprises, either for you or for us. Should the lender discover something about your financial situation that we weren’t aware of, the results can be detrimental. Apart from preventing your loan from being approved, it may also impact on your ability to get finance in the future.
Another reason why providing your paperwork and information upfront is so important relates to timing. If you want to be ready to spring into action to purchase your dream property before it falls through your clutches, then we’ll need to get your loan approved as quickly as possible. Not having all the required information ready to go is often the biggest roadblock to making this happen.
Perhaps the best advice I can offer is to save yourself the angst and try to quell your natural inclination to question whether these documents are really required. Instead try to provide us with whatever it is that we’ve requested in timely manner. Remember, there are legitimate reasons why we ask for your paperwork, none of which are because we’re determined to make your life miserable.
Here’s a couple of suggestions to help make the process easier:
Set aside some time – Don’t procrastinate. Allocate an hour without any distractions in which you can locate all the paperwork. Slowly chipping away, inch by inch, only serves to unnecessarily protract the experience.
Share and share alike – If there’s more than one applicant, then is helps to delegate the tasks. One applicant can collect the bank statements for example, whilst the other might collect income documents.
Please remember, we’re here to help! If you have any problems along the way, we’re always on hand to lend assistance in whatever way we can.