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03 9855 9290

The Loan Process

5 Step Loan Process

Objectives

Our objectives are to fully learn about our clients’ background, objectives and goals and then connect that information to appropriate lending instruments with a view to an approval within a desirable time frame.

Needs Analysis

E

Arrange a meeting with the above objectives
in mind with a clear understanding of the desired outcomes.

E

The needs analysis is usually done face to face but can also be achieved remotely through completion of the Pre-Approval Application.

Documentation

Good documentation is key to driving successful outcomes for both lender and borrower. There will be information that our clients are reluctant to provide due to privacy concerns. MDM Finance commits to collect and disseminate the information for the purposes outlined in our Privacy Policy and with special attention to:

E
Full disclosure is essential

Outcomes can be impacted if financial information is withheld or is inaccurate as this can effect outcomes, ability to service loan requirements and can often lead to a refusal of a lender to proceed with an application.

E
False information

While it may lead to a loan approval, can in some cases result in a default and ultimately financial stress for the borrower.

Application

The application stage takes the two previous stages and wraps them into the loan application based on the best product that meets the clients borrowing requirements and include:

E
Client discussion on the preferred lending option prior to preparation of the loan application.
E
Product recommendations are based on lending product knowledge, banking relationships and match to customer requirements.
E
The loan application documentation is key to disclosing the clients’ financial situation, capacity to service the loan and risk assessment.
E
MDM Finance staff are very knowledgeable in creating a loan application that captures these objectives and above all; mitigates the risk situation through development of a credit ‘story’. This credit story spells out why the loan should be approved based on the selection / approval criteria being met.

Approval

The approval process involves MDM Finance and the lending authority jointly and involves:

E
Communication between MDM Finance and an Account Executive or Business Development Manager with the bank or lending institution takes place to clarify any items in the loan application and to address any additional risk elements that are identified by the lender.
E
Upon completion of the review process, the lender provides an approval notification to MDM Finance who in turn, notifies the client that the loan has been approved.
E
The lender prepares the loan documentation and provides this to MDM Finance who make arrangements to have the loan contracts (usually in duplicate) to be approved by the borrower.
E
Upon signing of the loan contracts, MDM Finance deliver a signed version to the lender while ensuring the borrower has a copy for reference and compliance.

Settlement

MDM Finance work with the lender, borrower and clients’ legal representative to meet Settlement objectives which are:

E
Setting / confirming a date for settlement i.e. the date at which a handover of funding takes place
E
Acting as the liaison between the lender and all parties to ensure all parties to the transaction have all information necessary (and funds available) to meet financial requirements of settlement
E
Providing advice of completion.

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