Tips for brokers to avoid approval delays

It’s no secret that the impact of the Royal Commission has seen loan approval times increase for many lenders.

With more information requests, processing times across the industry have blown out to over nine weeks in the past year.

If you’re a broker, getting quick answers to customers is essential, so here are five application tips.

1. Understand the customer

It might seem obvious, but having a clear understanding of what the customer wants will pave the way for a quicker process.

Missed details and confusion can create unnecessary delays. Nothing saves time quite like communication, so be open and clear with the customer from the get-go.

2. Pitch your scenario

For scenarios that aren’t straightforward – perhaps it’s a borrower with an unusual income stream or credit blemishes – it can help to talk to a lender first.

A lender with a broad appetite, like Liberty, can find solutions to deals that don’t fit the regular mould.

3. Try something new

Diversifying into new asset classes adds breadth to your offering, provides new income streams, and can be the most efficient solution for the customer.

Don’t let the unknown deter you. Your BDM is there to support you, whether it’s your first custom loan or fiftieth prime mortgage.

4. Collate carefully

Wrongly completed or missed documents are the most common hold-up during the application process. So, check that the customer has provided everything required before submission.

Including a cover sheet summarising the customer’s situation and goals is useful for the underwriter. The more information you can provide the better.

5. Secure pre-approval

Arranging pre-approval gives customers the confidence to shop around knowing they’ve already got the loan sorted.

To get an indication of loan turnaround times for your next application, contact a Liberty Adviser today.