Loan Application Process for Frederick John and Margaret Anne

The assignment details the loan application process for Frederick John and Margaret Anne. It begins with a customer contact sheet record, followed by advice on loan approval, document sign-up, and settlement preparation. The process involves approaching the client, collecting information from them, taking referrals, and developing a professional relationship. The finance broker must also ensure that documents are properly signed and that necessary information is provided to clients regarding insurance and settlement checklists. Finally, the assignment concludes with advice on transaction completion and finalization, including conducting customer satisfaction surveys and making necessary improvements.

Loan Application Process

TABLE OF CONTENTS
PART A...........................................................................................................................................3
PART B...........................................................................................................................................8
PART C...........................................................................................................................................9
Completion of a customer file.....................................................................................................9
PART D.........................................................................................................................................10
A................................................................................................................................................10
B.................................................................................................................................................10
1.................................................................................................................................................10
2.................................................................................................................................................10
3.................................................................................................................................................10
4.................................................................................................................................................10
5.................................................................................................................................................11
6.................................................................................................................................................11
REFERENCES..............................................................................................................................12

PART A
Case study: Residential Mortgage
Client’s interview
On the basis of cited case situation, Frederick John and Margaret Anne wishes to
purchase their own home. From assessment, it has found that client has $184 plus FHOG
available. Purchase price of land and construction cost accounts for $240 K and 350-360K.
Along with this, from interview it has assessed that client will further spend $60k on furbishing
and garden. Through interview, it has also found that such couple will undertake insurance
policies for safeguarding then in against to illness and accidents. In interview, couple presented
that there is no such requirement in relation to making changes in the lifestyle.
Proposed loan strategies
 Diversification: by using capped interest rate
 Taking loan from banks using safety net
 Targeting low-cost flexible loans.
From assessment, it has identified that Frederick John and Margaret Anne are eligible to get
grants from state commission office (Apply for the First Home Owner Grant, 2018).
NOTES TO LENDER TEMPLATE \
Loan application for XXXXXX & XXXXXXXX
Loan amount $466000
Latest date for approval ………/………/…………
Date: 28th April 2018
Please find loan attached application for the above clients.
Reasons behind taking loan
The reason behind taking loan by Frederick John and Margaret Anne is that they want to purchase their

own house and settle into one area.
Employment
Frederick working with BHP Billiton on their mining projects.
Margaret (qualified nurse): Working in child care centre on a permanent/part time basis
Joshua: Full time employed
Current income level
Frederick (annual income): $115,000
Margaret Anne: Earns $29,000 annually
Joshua: $75.00
Recommendations
Good financial position (couple and their one child is earning, only one child is dependent)
High employment stability
High security in new investment
Sincerely
Borrower
EVIDENCE ENCLOSED
Y N N/ A
1. A fully completed
AAMC Training
Assessment Cover Sheet
2. A fully completed
AAMC Training
Document Checklist
(this page) Case Study -
Loan Application
Preparation (Task 1)

3. File notes from first
contact through to
settlement in
chronological order
4. Authorised Credit
Representative Credit
Guide and Licensee
Credit Guide
5. Client Needs Review
or Fact Find
6. Privacy Statement
and Consent form
7. Combined Credit
Quote and Proposal
8. Product Comparison
Report (at least three
options)
9. Preliminary
Assessment
10. Costing sheet for
Fees and Charges
11. Fully completed
Lender Loan
Application or Copy of
Online lodgement

12. Lender’s loan
Document Check List
(Normally forms part of
loan application) ☐ ☐
☐ Process Applications
for Credit (Task 2)
13. A completed
serviceability calculator
(refer to useful
resources)
14. Loan
Comments/Lender
Comments
15. Evidence of Income
(Pay slips, Employers
Letter, PAYG
Summaries)
16. Evidence of an
Offer & Acceptance or a
Contract of Sale or a
Purchase contract
17. Evidence of Council
approved plans (House
and Land , Off the Plan
packages) Plus a Fixed
Price Building Contract

18. Evidence of savings/
equity and other loan
commitments
19. First Home Owners’
Grant application
(These can be
downloaded from your
Office of State
Revenue)
20. Anti Money
Laundering/Counter
Terrorism Financing ID
requirements Note: 2
forms of identification
is required for each
applicant to the loan and
a separate AML ID
form is required for
each applicant.
21. Evidence of
Valuation successfully
completed
22. A Compliance file
checklist Completing
Customer File (Task 3)
23. Fully completed
Settlement document
pack (Refer to the
Settlement

24. Create a
customer/referrer
database (Task 4 A)
You are required to
prepare and submit your
data-base on contacts
made from this
transaction by using
your internal CRM or a
suitable program i.e.
Excel.
PART B
On the basis of Lender Mortgage Insurers guidelines following aspects need to be met for
the purpose of loan approval. Below mentioned image shows that loan volume ratio varies as per
investment type. In the case of mortgage case scenario, pertaining to vacant land, under the
category of 90.1% to 95% loan ratio, maximum amount implies for $600000 respectively. On
the other side, in the case of 0-90% loan volume ratio, maximum loan amount implies for
$700000, $400000 & $200000 respectively from category 1 to 3. Hence, as per the guidelines
provided by lender mortgage insurer, depicted below, loan application will be verified and then
approved. Further, lenders analyst need to ensure that firm is following the aspects of responsible
lending conduct obligations as per National Consumer Credit Protection Act 2009 in checking,
verifying and maintaining records (Responsible lending, 2018).

(Source: Maximum LVR and Loan Amount Matrix. 2018)
PART C
Completion of a customer file
1. Customer contact sheet record
Customer: Frederick John and Margaret Anne
Banks: Commonwealth bank (Big four bank home loan rate comparison, 2018)
Government bodies: State commission office is offering $10000 to the couple as they are
meeting eligibility criteria.
2. Advice of loan approval: Being a finance broker, it is accountability to record and maintain
the evidence of effectual communication done with customers, real estate and settlement agents.
3. Document Sign-Up/Settlement Preparation: In this, there is a need to ensure that document is
properly signed pertaining to checklist and mortgage. Along with this, information regarding
insurance and settlement checklist needs to be fulfilled by finance broker.

4. Advice of Transaction Completed/Finalised: At this step, communication in relation to the
successful settlement is done. Further, for finalising deal prominently there is a need to conduct
client satisfaction survey and thereby make necessary changes for improvement.
PART D
A
Date Database
28/4 Approaching to the customer
29/4 Information Collection from customer
30/4 Taking referrals from the client
B
1.
Database furnishes information about the extent to which client is capable in relation to
meeting obligations.
2.
Professional relationship development is highly required for achieving success and
enhancing brand image.
3.
Individuals or customers with the history of credit defaults should not be contacted.
4.
Interpersonal style or skills are highly required in the context of finance broker.
Moreover, without having effectual communication skills broker would not become able to
convince or deal with the customers. Further, customer’s requirement in relation to the loan
policies and process also differ as per demographical aspects. Thus, broker should keep in mind
all such aspects while dealing with the clients.

5.
Being a finance broker, it is highly required to take follow-up from the business referrers
as it helps in checking or evaluating the credential of the concerned customer.
6.
For the development of new business focus will be placed on undertaking traditional and
modern promotional aspects. In other words, by placing advertisements on social sites awareness
among the customers can be developed regarding the services and thereby customer base as well
as sales revenue.