Annoyed at home loan application

Fortnight, I would be absolutely raging having to wait a fortnight for a decision back. 2 days standard 3 days is when it's delayed when you're going direct through the bank. That is for FULL assessment. Most of the time I've got instant approval. This is somewhere were a broker just can't compete and most bankers have no idea - well along with most clients have no idea the same approval takes 2 weeks longer going through a broker for the same deal.

I honestly believe this is why a lot of banker and broker don't do them, but I'm a strong believer of them and find that just about every client that does a pre-approval will proceed with me if they do buy - and if they don't so be it. They didn't buy the property, still meant they went through the process and when they do proceed will likely come back or if someone else they know if looking they will potentially refer

Agent in SA are a different bread sometimes - also guess look at it from the agent/vendors POV, two offers on the table exact same amount, same conditions subject to finance, one has a pre-approval other does just a verbal from banker/broker - tell me who does the agent go with.

As for the pre-approval document only ever suggest clients to show the 1st page saying they're conditionally eligible, not the 2nd with the amount - agents will fish for this and use it against them.

 

@Brady pretty sure Pete meant the app was a fortnight ago, not a fortnight to approve!

 

@Brady the application was submitted a fortnight ago, I received the pre-approval a few hours after submission. Given the complexity of the deal I was quite surprised at how quickly I received it. At a minimum I was anticipating a phone call from credit.

A pre-approval is pointless if it's not reviewed by credit. It's little more than a marketing exercise to stop the borrower shopping around different banks (most people do come back when they purchase if they've got a pre-approval, but I know for a fact that conversion rate is not 100%, and many don't purchase within the pre-approval window).

A cursory pre-approval creates a significant risk for the borrower. Several times a year a new client will tell me, "The guy in the branch told me I was pre-approved, but when I bought the house they told me they won't give me the money." I've heard this about every lender with a branch presence. It usually turns out the pre-approval was never reviewed by credit, it was little more than the bankers opinion. If a broker gave this sort of advice they'd be sued.

I certainly agree that bankers get faster service from credit than brokers do, but really that's about the only advantage that bankers have. When dealing with only one bank, there's only one toolkit available, one set of policies to work with. This can be very limiting for lending strategy purposes, people can leverage significantly more by using multiple lenders through a broker that understands the nuances of multiple lenders policies.

 

I wanted to look at a place that had a DHA lease, I am not sure if the agent was creating this, but to view the property a pre approval was requested.

 

lol.... 2 days..... not Liberty.....

Actually, for those that have done loans with Liberty, is the more than 2 weeks normal ?

The majors are pretty swift, but smaller lenders also seem pretty good, even Pepper seem quick, what is your experience with Liberty ?

 

Disagree as per above - it can still lock in policy, lock in discout and allow clients to negotiate. You can't ignore these.

Far from it - funny thing is you have said it also - most people do come back when they purchase if they've got a pre-approval. They would only come back if they were happy with the service and products/rate offered, if they aren't they would shop around. Agreed no-one would have conversion rate of 100% as every person doesn't always buy.

Disagree again - think it's time to start that thread @Rolf Latham that you wanted to on SS - I'll shoot you a PM.

 

I definitely believe pre-approvals are looked upon favorably by vendors and agents. You don't have to show the price, just the paperwork that says you mean business.

I have been involved in the buying and selling of numerous properties and I believe sitting on both sides of the fence, that those with pre-approvals get the most attention.

@Colin Rice there is no doubt you are a great broker as per your contribution on these forums but I would have to argue that a vendor/agent would have more faith in you confirming the buyer has finances versus an official letter from the bank. Your working for the buyer not the vendor, and let's not forget brokers don't necessarily have the best name in the business thanks to the crook ones who dodge documents.

 

Most pre approvals dont mean a lot in reality as they are auto generated in many instances. I can generate a written one through the software we use on a company letterhead which carries more weight (in reality) as I would NEVER issue one without a FULL assesment, as if the application had actually gone to to the bank minus a credit inquiry.

I cant recall a client missing out, minus serial lowballers, on a property because they didnt have a bank preapproval to flash in front of the REA v calling me to confirm their capacity to attain the required funds.

With the corect tone, attitude and choice of words I reckon it trumps a written preapproval to instill confidence in an REA.

 

But @Colin Rice your now expecting the agent to have to make a call to you and have a discussion. Isn't that outside the scope of posting an ad online and having house opens

 

Agreed. That's the approach I generally take as well. I let them know that I've assessed their situation and feel that they present a strong application so a pre-approval isn't necessary. I've never had an agent have an issue with this - if anything they're usually grateful for the transparency.

If the deal is marginal then I'll get a fully assessed Pre-approval.

Cheers

Jamie

 

Liberty has the worst customer service i have ever encounted with Banks......Shocking !!!

 

In Australia they may have tightened the lending criteria but unfortunately what they can do with the customer is wide open for finance companies to emulate loan sharks.

If I told you what NAB has recently done to my loan (and I went through a broker), you will understand that $440 is nothing compared to what they can do.

Remember if you are applying for a variable rate, they can change the rate on you, often at short notice. So you could have signed up and in a month or two they could have done this to you.

Call the finance manager and give him/her a piece of your mind. Dont be afraid to raise your voice on them. Tell them you want a refund as you were misled that you were being given a certain product, you were charged to be offered that product but the product you were offered at the end was not the same. Lodge a dispute or go to watchdogs like consumer affairs or financial ombudsman (although both are in bed with the finance companies) if thats what it takes.

My advise is move on from this finance company, there will be far more problems down the track if this is the beginning. Brokers will help but with a bit of research you can also do the same stuff.

 

Actually Liberty are being fantastic to deal with right now. They're getting back to me within 4 business hours on applications.

At least that's what I've encountered over the past fortnight. Prior to this I completely agree. For years they've been incredibly difficult to deal with at every turn. I'm hoping their current service will be ongoing.

Bad service or not, if they're the only one who'll lend money, then you're still stuck with them.

 

Exactly. I think many are happy to talk with a broker and we go on to keep the agent updated through out the process and they alwsys say "this is very rare but very appreciated".

Reputation eventually proceeds you after years of doing the best thing by all parties concerned with good communication as the the centerpoint.

A project manager is probably a better title than just mortgage broker