We are now entering the busiest time of the year for banks, lenders, and mortgage brokers!
As we get closer to the end of the year, the pressure is on for banks to get settlements done! The last Friday before Christmas is traditionally the biggest settlement day of the year – hey, who doesn’t want a new house for Christmas right! This year that will change slightly, with Christmas Eve falling on a Friday.
To ensure that this is possible, lenders will release a detailed timeline of milestones that need to be ticked off to ensure the settlement is completed on time – some lenders have already released these key dates. They will include:
To ensure your clients get the joy of settling prior to Christmas, it is imperative that both you and the buyers are aware of these key dates with each lender. Regular contact with your Pivotal Broker will ensure that the champagne on Christmas Day tastes perfect – rather than being left with a sour taste in your mouth from a delayed settlement!
How does the Christmas deadline affect buyers' finance applications?
Just like individual businesses, each lender has their own unique ways of doing things. Some have invested heavily into their systems, which has paid dividends in their ability to assess and approve loans quickly with minimal fuss. Other lenders hobble along with multiple antiquated platforms, which you could be forgiven for thinking are tied together with virtual gaffa-tape and glue. No matter the system that the lender uses to operate, the volumes at this time of year will stretch their capability. The gaps in streamlined systems may be quickly identified and plugged, with minimal impact on the purchaser's application. The lenders with clunky systems may give way to gaping holes that delay approvals and settlements. Understanding the beast we are dealing with, selecting lenders that can deliver during this time, and communicating clearly throughout, will help us all get through the busiest months, in the busiest year, we have ever seen.
Communication is key at Christmas
Just as in the dealings between a sales agent with the seller for a contract of sale, effective communication is key for a loan to be successfully pushed through the ‘application pipeline’. The number of proactive interactions a broker needs to initiate with each loan application would average over 100 - be it with multiple lenders when researching loan options, buyers when finalising the application, or conveyancers/valuers with the timing of each step. At this time of year, pre-empting what, why, and how the loan application may become bogged down is something we at Pivotal Financial have become very effective at doing. This allows us to increase the formal support from the numerous stakeholders, with the end result being a buyer's loan application reaching each milestone on time, given uncontrollable can hamper its success. By steering the process behind the scenes using clear and effective communication is arguably the biggest success factor we can contribute to your contract settling.