Defining the Loan Purpose.
In this Broker educational series, we sit down with Funding’s Senior Credit Manager, Arrin Bowker, to discuss what is paramount in a private lending loan application.
The quality of the initial application often dictates the speed of loan approval and settlement. To help brokers and borrowers, Arrin outlines the vital elements of an application and discusses the initial conversation that needs to occur to ensure all parties are across the loan and its purpose.
This video is part two of a six-part series and discusses why a clear and genuine loan purpose is essential. Arrin outlines the different loan purposes we can assist with at Funding, including:
- Urgent bridging and short term loans
- Business and personal loans
- Vacant land and land banks
- Equity cash out
- Commercial property
- Non-residents and self-employed
Arrin also explains why our credit team (and the broker) needs to understand the loan purpose and uses when reviewing a private lending loan application.
Watch Video 1: The importance of a great application.
Stay tuned as we release the following videos to sharpen your private lending skills and submit high-quality applications.
Video 2 – Clearly outlining the Loan Purpose
Video 3 – What are Committed Exits?
Video 4 – Determining the Registered Owners on Title
Video 5 – How to show Tested Servicing
Video 6 – Addressing Risks with Mitigants
Have questions on this video? Feel free to send them through to firstname.lastname@example.org
Have a scenario you think we can help with?
Another Successfully Repaid Investment: Yeppoon, QLD 4703
The loan was repaid on time with all investors being paid their full principal and interest amounts after the borrower refinanced to a mainstream lender.
Correctly Defining the Registered Owners on Title in Private Lending
This video explains why it is essential for brokers and borrowers to correctly outline all of the registered owners on the title when applying for a loan. In addition to ensuring all tenants are listed, the borrowers must also identify who is benefiting from the mortgage transaction (transfer of benefit).
Another Successfully Repaid Investment: Beaumaris, Victoria, 3193
Borrower Insight The loan was introduced via a mortgage broker. The borrower needed to urgently refinance an existing facility that was reaching maturity, and their primary exit strategy was to…