Why is it importance to provide detailed and realistic living
expenses on your loan application? Because it can assist in reducing the
turnaround time on your loan approval?
Yes, absolutely! Because, if you declared living expenses that do not represent the expenditure in your bank account and/or are not deemed to be realistic based on industry benchmarks, lenders are then required to make further enquiry. This, of course, results in a slower turnaround on the loan process.
The HEM and HPI benchmarks should be used as a guide only
These are the standard industry benchmarks that help determine whether declared living expenses are realistic, they cannot be used by the Broker – you need to provide and estimate of your own current income and expenses. This is also important so you ensure you can afford a new loan…..like a reality check.
Ensure when completing living expenses that you cover all dependents and your living arrangements – whether split mortgage payments with partner or renting or living with family.
A faster turnaround on your loan approval can be achieved by providing facts and data
Providing a realistic record of expenses for your loan application – we assist clients by providing them with a form for them to complete and remind them of some expenses they may forget. Often it is a good idea to review your last 3 months bank statements
The statements will help identify the frequency and amount of regular outgoing payments on a range of expenses, including:
- Housing (mortgage, rental & council rates)
- Communication (telephone/internet plans)
- Child support and maintenance
- School fees / child-care
- Utilities (water, electricity, gas)
- Entertainment (pay-tv, sporting activities, gambling accounts)
The more detail, the better (and the faster your
loan will be processed)
Giving a one-line sum of total living expenses that fall well below industry benchmarks is now a thing of the past. It really is beneficial for you to spend a little extra time and consider your living expenses – so we can help identify which lender is most appropriate for you and whether you can afford the loan….saves on disappointment down the track.
Also with more reliable data will ultimately result in a faster assessment and approval.
Call Jan now 0468 371 449 to discuss your requirements – personal loans, car loans, boat or jet ski loans or even that wedding or holiday