1. What is an approval in principle?


2. I have filled out an application, now what?


3. What is the Finance Clause date?


4. I know that I have a “Black Mark” against my name on my credit report. Can you still help me?


5. How long will it take for my loan to settle?


6. When is my first payment due?


7. Do you organise home loan appointments outside of normal business hours and will you come to me?


8. What is a good indicator of Interest Rates movements? How are they calculated?


9. Why should I use MyLender over your competitors?


10. I have been approached by a “Mortgage Reduction” company, what is the difference between them and MyLender?

Answers

1. An approval in principle usually means that you application has passed through the first part of the approval process, & depending on the lender may be approved up to the mortgage insurance acceptance of the security property.[top]


2. Now that you have filled out the application form & hopefully supplied all the supporting documentation, we will be able to package the application in a manner that the lender will be able to “tick & flick” it. We (in most cases) will order a valuation, once the valuation has been returned, we should be in a position to be able to get unconditional approval. This is the final hurdle in the mortgage application process. Once Unconditional Approval is granted, solicitors will be instructed to prepare documentation. When the documentation is returned to the solicitor, they (the solicitor) will prepare for settlement. If you are refinancing the solicitor will contact the outgoing funder to organise a settlement date. If you are purchasing the settlement will be pre-arranged when signing the purchase contract, this period is usually one month from the contract of sale date.[top]


3. A “Finance Clause” date is a date when you have to have an Unconditional finance approval, this date is usually 14 days from the date of the signed contract for Queensland purchase contracts. Care should be taken with other state contracts & you should always refer to your legal adviser.[top]


4. n today’s world you are not alone, it is estimated that 1 in 4 applications are declined by the major banks because of credit impairment. MyLender has arrangements with a number of sub-prime lenders that specialise in helping people with credit impairment. Depending on the number, the amount & the type of credit impairment will decide the interest rate. These type of lenders work on a rate for risk formula. We see the sub-prime lender as a means to an end once you have cleared your impairment we will help you get back to a mainstream lender.[top]


5. For both a Purchase & a Refinance it would be safe to assume one month from the date of application. If you require a quicker settlement period please contact us & we will guide you through the steps to make this happen sooner. [top]


6. Your first payment is usually due one month after settlement. This date is called your anniversary date & repayments are to be made on or as close to that date monthly or however your contract says so.[top]


7. We are available at whatever time & place you would like. Although we have families as well that we like to see on the odd occasion. We have a state of the art premises centrally located in East Brisbane that we can also have appointments at. Parking is available at the rear of the premises & on the street outside our store after 9am. We are located at 912 Stanley St, East Brisbane, approximately 300 metres from the “Gabba”. Click here to view our location on a map.[top]


8. It is our belief that a good indicator of interest rate fluctuations is the fixed rate products. If you think about it an institution wouldn’t offer a fixed rate at well below what they feel the interest rates would be in that period time. E.g. if the fixed rate for 5 years is 7.17% then it is likely that interest rates will remain the same throughout the period. Conversely if the fixed rate for 3 years is 8.00% it is likely that we are looking at an interest rate market that is about to move upwards. Most institutions use the Reserve Bank policy for the movement of interest rates. The RBA meets the first Tuesday & Wednesday of every month except December and January.[top]


9. MyLender is at the forefront of legislation, we believe that our clients should be enlightened, educated & informed as to their choice of products, lenders etc. We will supply all the information to enable this to happen. Part of our initial interview process is a questionnaire to allow us to find out what features needs you require. We use state of the art software that allows us compare loans side by side to enable you to make a decision that is right for you. We have access to over 50 Lenders products as well as our own. [top]


10. Mortgage reduction is a “Fad” that was popular in the mid to late nineties. Mortgage Reduction companies would offer their services via a Line of Credit to reduce mortgages whilst they receive astronomical payments for their services plus commissions at a higher rate than they are today. Nowadays there is very little difference between Line of Credits & Term loans, the services offered by Mortgage Reduction Companies in the past can be controlled by yourself without the $3000 fee they used to attract.[top]