Frequenty Asked Questions - Nationwide Lending

How long does the loan process take?

Steps	Time Line
1. Customer Loan Interview	Up to 2 hours
2. Application Taken	Time of interview
3. Application handed onto Personal Assistant (“PA”)	Next working day
4. PA data enters all information; Copies & returns any original supporting documents that are supplied	Same day
5. PA checks application & supporting documents are complete	Same day
6. PA directly liaises with customer regarding any missing supporting docs, or will utilise the signed “Authority to Act” to obtain required supporting documents	Same day
7. PA will then fax the completed application to the applicable lender	Same day
8. Lender assesses the application for a “Conditional Approval”, which will be subject to a property valuation	Up to 5 working days
9. Lender requests a valuation from their “Panel of Valuers”	Up to 5 working days to complete
10. Lender receives the valuation report & providing the valuation is acceptable to the Lender, the application will be formally approved (This means all is now ok)	Up to 2 working days from when valuation is received
11. The lender then instructs their solicitors to prepare & mail out loan contracts to you	Up to 3 working days
12. You then need to read & sign the loan docs & return as instructed	-
13. Upon receipt of the loan documents to the lender, settlement is scheduled	-
13a. “Refinance” - The new lender needs to schedule settlement with your existing lender	Up to 21 days (Depending on existing lender)
13b. “Purchase” - Your Conveyancer will schedule settlement with the lender & Land Titles Office
14. Loan Settles - Congratulations!	-

What is LMI?
Lenders Mortgage Insurance is payable by the client to protect the bank, not the client. This is payable for almost all loans that exceed 80% of the value of the property. The LMI is calculated on a sliding scale based upon the size of the loan's value versus the property's value. In other words, an 85% lend will have a much lower LMI charged than say a 95% loan. Your Nationwide Lending Mortgage Specialist can assist you further.

What is CRAA?
Credit Reference Association of Australia, which is now known as Veda Advantage. This is an organisation that retains all Australian individuals credit history file. Every time a person applies for credit anywhere in Australia, a log of the enquiry appears in your credit file and will remain there for up to 5 years. Veda Advantage also logs all loan defaults and court judgements made against you. One of the first things that a lender does when a loan application is submitted, is to do a credit check. Therefore, it is of paramount importance that you keep all your financial commitments up to date as any default will blemish your credit file for up to 5 years. A copy of your credit file is freely available via www.mycreditfile.com.au. Please note that it is not the end of the world if you already have defaults on your credit file, as we have several lenders that are understanding. Some of the lenders will even payout outstanding debts that you may have. Your Nationwide Lending Mortgage Specialist can assist you further.

What does LVR mean?
Loan to Value Ratio. In English, this is simply the percentage of the loan amount, versus the property's value. As an example, a $200,000 property with a $160,000 loan secured against it, is an 80% LVR. Your Nationwide Lending Mortgage Specialist can assist you further.

What is a LOC?
Line of Credit. This is a loan where your entire income is credited into the account. You then live on a credit card which is attached to the LOC and the credit card is fully repaid at the end of each month. Interest on the LOC is calculated daily, so therefore the total interest charged is somewhat reduced due to most of your income sitting in the LOC. The good and bad feature of a LOC is that let's say you have a $150,000 LOC and manage to pay off $50,000 off of the facility. You always will have an available credit limit of $150,000 so only your discipline will control whether human nature kicks in and you go on a spending spree or not. Most people we find that have had a LOC for a few years, tend to refinance away from having this type of temptation and choose a basic variable loan instead. Your Nationwide Lending Mortgage Specialist can assist you further.

What do I need to provide?

Individual & Joint Applicant

100 Point ID:	Photo Identification required for all applicants. Drivers Licence = 40 points Passport = 70 points Birth Certificate = 70 points (Marriage Certificate required if in maiden name) Credit Card = 25 points (Only 1 can be used from the same provider) ATM Card = 25 points (Only 1 can be used from the same provider) Medicare Card = 25 points Phone Account = 25 points Council Rates Notice = 25 points
Proof of Income:	PAYG (Employee) 2 recent payslips, less than 4 weeks old Previous financial years Group Certificate/s Centrelink Statement/s (if applicable) Lease agreements for rental properties (if applicable) A letter from your employer may need to be provided, if you are unable to provide payslips and/or have been employed for less than 3 months without any probation period applicable. Your Nationwide Lending Mortgage Specialist can assist you further. Self Employed Last 2 years' individual tax returns Last 2 years' company/business tax returns Lease agreements for rental properties (if applicable) "Lo Doc Loans" are available, if your financials are not. Your Nationwide Lending Mortgage Specialist can assist you further.
Proof of liabilities:	Some lenders require a copy of the latest statement for each loan and/or credit card that you currently have.
Refinancing:	For each loan and/or credit facility that you wish to refinance, you will need to provide copies of the original statements over the last 6 month period. Internet statements are generally not accepted by most lenders.
Proof of savings:	Bank statements will need to be provided to demonstrate genuine savings of at least 5% of the purchase price of a property over the last 6 month period. Please note that some lenders only require 3%. Proof of savings are only required for purchasing a property with a loan amount above 80% of the purchase price being required. Please note that some lenders will lend up to 100% of the purchase price, without any proof of genuine savings. Your Nationwide Lending Mortgage Specialist can assist you further.
Deposit & Costs:	Proof of your funds to cover the deposit & costs of a property being purchased are required by most lenders. As a rough rule of thumb, 5% of the purchase price will cover all of the associated government costs. Please note that if your loan exceeds 80% of the purchase price, LMI (Lenders Mortgage Insurance) will also be payable, however this can be added to the loan by some of our lenders.
Building:	Most lenders provide construction loans to assist you to build your new home. A copy of the building contract, plans and specifications are required by all lenders.

Company and/or Trust Applicants

100 Point ID:	Photo Identification required for all applicants. Drivers Licence = 40 points Passport = 70 points Birth Certificate = 70 points (Marriage Certificate required if in maiden name) Credit Card = 25 points (Only 1 can be used from the same provider) ATM Card = 25 points (Only 1 can be used from the same provider) Medicare Card = 25 points Phone Account = 25 points Council Rates Notice = 25 points
Proof of Income:	Last 2 years' individual tax returns Last 2 years' company/business tax returns Last 2 years' Trust tax returns (if applicable) Trust - Dead of Association Documents (if applicable) Lease agreements for rental properties (if applicable
Proof of liabilities:	Some lenders require a copy of the latest statement for each loan and/or credit card that you currently have.
Refinancing:	For each loan and/or credit facility that you wish to refinance, you will need to provide copies of the original statements over the last 6 month period. Internet statements are generally not accepted by most lenders.
Proof of savings:	Bank statements will need to be provided to demonstrate genuine savings of at least 5% of the purchase price of a property over the last 6 month period. Please note that some lenders only require 3%. Proof of savings are only required for purchasing a property with a loan amount above 80% of the purchase price being required. Please note that some lenders will lend up to 100% of the purchase price, without any proof of genuine savings. Your Nationwide Lending Mortgage Specialist can assist you further.
Deposit & Costs:	Proof of your funds to cover the deposit & costs of a property being purchased are required by most lenders. As a rough rule of thumb, 5% of the purchase price will cover all of the associated government costs. Please note that if your loan exceeds 80% of the purchase price, LMI (Lenders Mortgage Insurance) will also be payable, however this can be added to the loan by some of our lenders.
Building:	Most lenders provide construction loans to assist you to build your new home. A copy of the building contract, plans and specifications are required by all lenders.

Why pay inflated fortnightly repayments?
We all want to pay off our home loan sooner but often finding additional lump sums to repay on our home loans is almost impossible to do. However, an easy way to slice approximately 6 years off of a standard 30 year term is as follows:

Let's look at the basics. There are 12 months in a calendar year, however there are 26 fortnights. The majority of home loans are set up to repay monthly, as in 12 payments per year. If we simply divide the monthly repayment in 2 and then pay this amount each fortnight (26 repayments), we actually sneak in an entire extra month's repayment each year.

Examples of the savings are as follows:

Loan Amount:	$160,000
Term:	30 Years
Interest Rate:	6.57%
Monthly Repayment:	$1,019
Total Repayments:	$366,727

Loan Amount:	$160,000
Term:	24 Years (6 years less!)
Interest Rate:	6.57%
Fortnightly Repayment:	$509.50 ($1,019 divided by 2)
Total Repayments:	$319,000

You save:	$47,727 and 6 years

Can I apply online?
Yes! Nationwide Lending has developed an Online Home Loan Application. Simply complete the application and a Nationwide Lending Mortgage Specialist will find the ideal loan to suit your needs.

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