Loan Application Process Assessment

Loan Application
Process Assessment

Table of Contents
Task 1: ...................................................................................................................................1
File notes from first contact through to settlement in chronological order............................1
Authorised Credit Representative Credit Guide and Licensee Credit Guide.........................2
Privacy Statement and Consent form.....................................................................................2
Client Needs Review or Fact Find..........................................................................................3
Combined Credit Quote and Proposal....................................................................................3
Product Comparison Report Preliminary Assessment...........................................................3
Costing sheet for Fees and Charges........................................................................................4
Fully completed Lender Loan Application or Copy of Online lodgement............................5
Lender’s loan Document Check List .....................................................................................6
Task 2: Process application for credit....................................................................................8
A completed serviceability calculator (refer to useful resources)
................................................................................................................................................8
Loan Comments/Lender Comments.......................................................................................8
Evidence of Income ...............................................................................................................8
Evidence of savings/equity and other loan commitments....................................................17
Evidence of Valuation successfully completed....................................................................17
Anti-Money Laundering/Counter Terrorism Financing ID requirements............................22
A Compliance file checklist.................................................................................................22
Task 3: Completing customer file........................................................................................24
Task 4: Customer /referrer data base ...................................................................................25
CONCLUSION..............................................................................................................................26
REFERENCES..............................................................................................................................27
........................................................................................................................................................27
APPENDICES...............................................................................................................................28
AAMC TRAINING DOCUMENT CHECKLIST...............................................................28
.......................................................................................................................................................29

INTRODUCTION
Everybody in this world needs loan for something or the other in their life. This loan
taking process can be used to fulfil their needs. The individual has to verify various different
documents that the bank is asking if they don't fulfil it the bank will not give them loan. Another
major requirement that the banks nowadays are asking the credit score of the individual. In this
report the individual is needing the loan for building his house.
MAIN BODY
Task 1:
FHOGs is an abbreviation for First Home Owner Grant and it is a scheme that was
founded in 1 July 2000. This was set up in order to offset the effects of GST on Home
Ownership. It is to be considered as a national scheme that is funded by an accumulation of
territories and states and are being administered in accordance to their own legislature.
There has been a substantial decline in the affordability criteria in the housing market of
Australia. This problem of affordability is more excruciating for the first-time buyers and
therefore in order to mitigate this FHOGs are introduced. Any fluctuations in these criteria will
result in the hike of prices for the first-time buyers. And therefore, houses might exceed their
affordability criteria.
File notes from first contact through to settlement in chronological order
The notes taken in the first interaction by the broker associated with the eligible criteria of the
client will revolve around:
1. In order to check the eligibility criteria for loan the credit score of the concerned client
was 750 and therefore he as eligible for the loan.
2. The salary slip of client was taken into consideration in order to make sure that he has
frequent income flow.
3. In order to make sure that the client is eligible for paying the principal amount of the loan
along with the interest, his income was taken into consideration.
4. Client's legal record was also looked at.

Authorised Credit Representative Credit Guide and Licensee Credit Guide
The guide for the home loan revolves around the aforementioned steps.
Privacy Statement and Consent form
The privacy statement and content form are as follows:
Consent form revolves around making sure the client is compatible with the terms and
conditions of the loan provider. It helps in having a clarity in the contract.
Client Needs Review or Fact Find
1. Client needs the loan because the affordability structure of the marketplace is higher than
the client's savings.
2. The option of loan is taken into consideration because the client does not have to pay the
whole amount of loan at once. He can distribute that amount and pay it in instalments
over a fixed period of time.
3. Since the client is buying a house for the very first time, the prices of house is not
compatible with his pay-out structure.

Combined Credit Quote and Proposal
Applicant is Alan Jacob Henderson belonging to 17 Capital court. The applicant's gross
income is $111,000 per annum. The depends of the applicants are Jennifer Ann Henderson
DOB 07.03.2004 and Michael Alan Henderson DOB 07.03.2004. The applicant's bank details
are NAB – BSB: 001 002 A/c Number: 1234567. Other details about the applicants are he have
signed a contract of sale subject to finance for 3 weeks. The savings of Alan Jacob Henderson
are $110K. Alan Jacob Henderson is eligible for FHOG of $300,000. Alan Jacob Henderson
have paid $27K deposit on the $300K block of land. The estimated cost that will be incurred in
construction will be in the bracket of $350-360K. The applicant is believed to spend an
additional $32K on new furniture and curtains. Alan Jacob Henderson further wishes to spend
$78K of his savings as equity/deposit. Alan Jacob Henderson is believed to pay off his credit
cards in full every month.
Product Comparison Report Preliminary Assessment
Commonwealth Bank – Considered to be one of the biggest banks in Austria. This is considered
to be the first choice of any customer who is looking for a source of financing all over the
country. With its global operations, this bank is considered to be safe and is truth worthy among
the clients. The accountability and creditability of the bank in the market is strong and therefore
it will be the first choice for the applicant.
ANZ – It is an abbreviation for Australia and New Zealand Banking Group. This is the second
top most bank in the country. The financial institution has strong policies revolving around
attraction of customers. The bank is well known for their customer retention policies along with
the campaigns that they develop in order to enhance their customer satisfaction.
NAB – It is an abbreviation for National Australian Bank. This can be considered as one of the
most well-known financial institution all over the country and is known for their customer
experience enhancement methodologies and their strong focus on their believes and values
associated with the customers.
Costing sheet for Fees and Charge