Complete a preliminary assessment and loan application

What is going on

Harper and Osei are first home buyers seeking a 685,000 dollar owner occupied loan, file LN-26-0311, with contract exchange expected next week. The file holds payslips for both applicants, three months of bank statements, a credit report and a gift letter for 60,000 dollars of the deposit from parents. Declared living expenses of 2,800 dollars a month look low against the bank statements, one applicant has a car loan not listed on the application, and the couple have said they want to start a family within two years. The Head of Broking will do the second-person review before submission on Monday.

Your brief

Complete the Needs Analysis and Preliminary Assessment Template for Harper and Osei under the Loan Application Procedure and the Responsible Lending and Best Interests Policy, verify income and expenses from the documents, resolve the discrepancies, compare three panel products, write the best interests reasoning and prepare the file for second-person review.

Work through it

You do not need to do it all. Doing a few of these will show you what the work is like. Your ticks and notes stay on this device.

• Read the Responsible Lending and Best Interests Policy and the Loan Application Procedure and list the verification documents and disclosures required for this file.
• Record the clients' requirements and objectives in their own words from the file notes, including the plan to start a family, and identify it as a foreseeable change.
• Verify income from the payslips and living expenses from the three months of bank statements, and use the higher of declared and verified expenses.
• Identify the undisclosed car loan from the statements and credit report, raise it with the clients and record the outcome and the liability.
• Confirm the gift letter meets lender requirements and record the deposit source and the loan to value ratio.
• Calculate serviceability at the assessment rate for three panel products, compare their rates, fees and features against the clients' needs and select a recommendation.
• Write the best interests reasoning and the not unsuitable conclusion, date the preliminary assessment and update file LN-26-0311 in the Loan Application Pipeline.

What someone in this role would produce

• Completed Needs Analysis and Preliminary Assessment Template
• Verification notes with discrepancies resolved
• Product comparison and serviceability calculations
• Updated Loan Application Pipeline entry ready for review