Broker advice required

Hi brokers,

The current situation is that a client has lodged a loan application with ANZ but the assessor is apparently 'nervous' because one applicant does not have 3 months of consistent pay (missing due to the wedding/honeymoon). Hoping someone can answer my queries below:

1. Are you able to lodge loan applications with multiple banks without being legally binded to go with them once approved? What happens if they both accept? Are they able to say no to one bank without having any penalties?

2. If they lodge a second application through another lender, what happens with their first home owners grant as ANZ have already submitted the paperwork?

3. If they get declined from both banks, what are their options? And how badly will their credit rating be affected?

 

Ask for a copy of the assessors response. I've never seen 'nervous'.
Sending them previous payslips, employment contracts payg summaries/group certificates should sort it out.
Yes, you can apply again, but get a brokers advice, no sense walking down the road and applying again if that lender doesn't have policy to suit.
The broker can explain multiple enquires can look bad to some lenders credit score algorithms, but there are other factors considered, it's not black and white. Less enquires is usually better, but having a couple doesn't preclude Finance unless it's combined with other factors such as deposit amount, postcode or type of property etc.

Fhog is annoying. If anz have applied , and had a uin issued by the sro, then the new lender needs to have it recinded by the sro and lodge again. So this is a new home construction eligible for fhog?

 

Lol, assessors don’t get nervous. Either they tick boxes or they don’t. If they don’t meet requirements it might need to go higher up for an exception to policy.

1. An application is not a contract it is a request to be considered for a loan. If the bank approves it they will send contracts which are offers. A contract is not formed until the borrow accepts the banks offer – even then they can pull out before settlement.
2. You will need to relodge
3. Apply with a third.

 

Good answers above - get them to see a broker rather than head off to a different but equally unsuitable lender.

 

I would take the fight to the BDM.

There are always mitigating circumstances such as industry experience, a contract or letter of employment, marriage certificate etc and this sounds like a pretty legit reason. Some assessors take a ridiculous stance on issues that common sense would dictate is a non-issue. This is where the BDM should provide a voice or reason.

I say should ;-)

 

it will be interrupting their coffee time.

 

Agreed. Decisions can be very assessor dependent. I've had many deals where by simply pushing the issue and not accepting the outcome I've been able to get decisions overturned.

 

From someone who knows assessment -
This implies they probably can't substantiate a higher income figure that has been given for servicing by whoever submitted the deal because no other information was given to confirm it and the payslips don't add up. They would possibly be averaging the 3 months and coming up short. Unless they have only been with the employer for 3 months and taken leave straight away...?
Exactly as said above prove the income with additional documents PAYG summary, tax return and if legitimate and they can't approve under their authority with exception documents they can pass onto someone who can.
APRA will not allow -ve approvals so it's either they service or they don't, or they reduce the loan amount until they do.

 

Thanks guys, great responses!