Packaging A Near Prime Deal: Process And Tips
A swift turnaround time is essential for near prime borrowers, so we’ve outlined the important things to consider when packaging a deal that will help accelerate it through the process.
A swift turnaround time on a loan is essential for most borrowers, especially those in the near prime space. These borrowers may have already been declined by more than one bank and now have a settlement date looming on their purchased property, or a tight timeline to consolidate their debts. Our Lending Manager, Tyler Peters, outlines the important things to consider when packaging a near prime deal that will help accelerate it through the process.
When a customer is declined by the banks, or recognised to be a near prime customer, the first step for a broker would be to approach a Bluestone BDM. “Chat to them about your borrower’s scenario and in many cases, they will be able to give you an idea if we can assist your customer on the spot. Our BDMs work closely with Credit Scenario experts to make this process as quick as possible,” says Tyler.
During this step, it’s important to give a clear and concise explanation as to the customer’s specific circumstances. Tyler explains, “at Bluestone, we take great pride in understanding our near prime customers and exploring our options to assist them. Providing the full picture ensures we have everything we need, such as why the customer may have been declined elsewhere or why the customer has a small default etc. These issues are particularly important to disclose to us immediately.”
Once the BDM advises whether we may be able to help and has guided the broker through the relevant products/pricing for their client, it’s time to package the deal. The broker should aim to create a fully packaged deal; essentially, providing us with all the key pieces of information on the file, upfront, upon loan application submission. “Consider what type of borrower your customer is, to ensure that they gather the appropriate documentation. For example, are they fully-verified borrowers with tax returns and payslips, or do they have alternative documentation such as Business Activity Statements and/or Business Bank Statements?” asks Tyler. Brokers should aim to follow Bluestone’s loan application checklist closely, as this will be their best pathway to a quick turnaround.
Once packaged, the deal will then go to our Loan Coordinators, who will check that each item is accounted for and meets policy. In this step, brokers may be contacted for missing documentation, such as a second payslip or 3 months personal bank statements. They will be contacted by our credit team directly, as we believe that access to the credit team is integral to a seamless process and provides brokers with extra support.
Next, the deal will move to our Underwriters for assessment. “The aim here is for the Underwriters to already have the information they need in order to achieve a decision upon first assessment. Once conditional approval has been issued, the Loan Coordinators will work with the broker to make certain that the conditions are satisfied accordingly and will do so as quickly as possible,” Tyler explains. These conditions can often include a satisfactory valuation. Finally, once all conditions are addressed, the deal will be given an unconditional approval.
Bluestone recognises that the process doesn’t end with unconditional, which is why their BDMs are dedicated to guiding their brokers all the way through to settlement. What’s more, they understand that as the process goes on, it can be frustrating when there is a lack of communication between the internal teams. That’s why our teams talk to each other, providing updates about the progress each application and working together to massage it through to the end.