Preapproval assessment timeline

Discussion in 'Where to Buy' started by Liza28, 19th May, 2020.

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  1. Liza28

    Liza28 Active Member

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    Hi guys! Hoping all of you are keeping well today.

    I am just wondering any idea how long do banks assess a pre approval home loan application especially with the big 4 banks nowadays.
    Thank you in advance
     
  2. Lindsay_W

    Lindsay_W Well-Known Member

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    Most don't actually credit assess their pre-approvals so they're basically not to be relied upon. There are some that do.
    Recommend engaging a Mortgage Broker if you haven't already.
     
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  3. Brady

    Brady Well-Known Member

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    Which Big4? If CBA then direct with banker > broker everyday of the week.
     
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  4. Liza28

    Liza28 Active Member

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    We have engaged with a mortgage broker and applied with Westpac.
     
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  5. Lindsay_W

    Lindsay_W Well-Known Member

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    In the interest of disclosure, Brady works for CBA, hence the comment.
    Broker > Banker all day everyday, don't limit your options with one lender. And I'm a broker, hence my comment :)
     
  6. Lindsay_W

    Lindsay_W Well-Known Member

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    Have you asked your broker?
    Westpac are likely the slowest at the moment, could be anywhere from 6 business days to 34 business days - depending on the broker's status level within Westpac.
     
  7. Brady

    Brady Well-Known Member

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    OP asked about pre-approval with Big4.
    If one wants to go with Big4 most likely would be CBA today.
    Timeframe for approval is by far the fastest with CBA.
    Furthermore if you use direct over a broker.

    I'm about to start a refinance application now, it will be approved today, document printed today, client signed documents today, ready to settle probably by Friday (will just be waiting on OFI). This can't be done with a broker

    No idea why a broker would even think to put a deal with Westpac today if timeframe was a concern.
    OP anything specific to why broker suggested WBC?
     
  8. Lindsay_W

    Lindsay_W Well-Known Member

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    That's assuming ALOT - CBA may be fast but they don't have the best product in the market by a long shot.
     
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  9. Liza28

    Liza28 Active Member

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    Thanks for your input guys. I have asked our broker that as well as to why Westpac. I have read news and posts from people about how slow Westpac is nowadays when it comes to assessment of home loans. He stated that Westpac is good for construction loans. We are planning hopefully to build. I raised my concern about Westpac and was just told that timeline is the same 1 to 3 days to finish assessment of pre approval. A bit skeptical of course because of the recent news about Westpac.
     
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  10. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    ANZ is saying 23 days to pick up a file at the moment.
     
  11. Lindsay_W

    Lindsay_W Well-Known Member

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    Hmm I would ask is there any other reason for Westpac? Because there are other lenders that are also good with construction and have shorter turnaround times, heck even (dare I say it) CBA
     
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  12. Brady

    Brady Well-Known Member

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    Loans approved. Documents printed.
     
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  13. Liza28

    Liza28 Active Member

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    I have asked the same question twice only to be answered back that it will be the same timeline. However, I am getting impatient as it took them a while to submit application to Westpac eventhough everytime they ask requirements from us, we complied immediately. Took them 3 weeks to finally submit preapproval application. And now another wait for the assessment. It's the agony of waiting because we cannot move on to the next step without that "golden" preapproval letter. I guess, we should have to wait.☹
     
  14. Brady

    Brady Well-Known Member

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    Is there anything unique about your application? Why did they come back to you?
    Self-employed?
    Casual?
    Bonus?
    Commission income?
     
  15. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    You can still proceed. Just don't lock anything in without legal advice on whether you can get out.
     
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  16. Liza28

    Liza28 Active Member

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    Hi Brady. Not that I know of. Both of us work full time in the healthcare sector. This will be hopefully our IP. When you say bonus, does that mean weekend penalty rates?
     
  17. Liza28

    Liza28 Active Member

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    Thanks for this @Terry_w
     
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  18. Redom

    Redom Mortgage Broker Business Member

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    Lol that is amazing @Brady - agree, we simply cant compete with that yet. CBA have indicated to the broker network recently that much of that will be the broker process soon - being piloted at the moment. Great to hear initial delivery working so well on your end.

    To OP - if I wanted to do a full big4 pre-approval at the moment for a customer, I'd be doing it with CBA anyway.

    Other lenders are moving in that direction too - Resimac. Soon enough it'll be the standard to compete, which is great for customers. Covid19 is accelerating lenders into 2020 process/loan delivery.
     
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  19. Brady

    Brady Well-Known Member

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    No they're allowances. They're typical for health sector.

    Why I say banker > broker with CBA is for client like you, can be approved on the spot. No referring to credit assessors who can come back and forward with any request. You could have the pre-approval letter.

    When times comes to build, just like a purchase - again no further 'credit assessment' just the banker signing off.

    @Redom this has been the case since I've been a banker for CBA which is >10 years.
    Most CBA bankers don't release how much of a advantage this is, many take it for granted.
    Many brokers aren't even aware that CBA bankers can do this (when it's inside policy, some still need HLDC approval))

    I'm just starting another application, it's a purchase for an IP with existing security, therefore split application for no X-COLL. Unfortunately this requires credit approval due to multiple application (it actually didn't need to get referred before but now does - I've been asking a while for this to be changed back)
    Otherwise could also be approved, printed and signed the same day!
    Many bankers don't split the loan, it would allow instant approval by doing that. But really not the best thing for the customer.
     
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  20. Liza28

    Liza28 Active Member

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    Thanks guys. We have been banking with CBA for 7 + yrs now but our 1st home loan was with suncorp as that's what our broker applied us to. Guess I should've have suggested to our broker to apply us to CBA this time.. But what do we know! We are just clients who are seeking for experts' help. Is it possible to ask our broker to pull out our application with Westpac if it takes too long?
     
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