Task 25 ― Loan contracts and security documentation

Task 25: Question 1

When checking the loan offer contracts received from the lenders, what key points should you check to ensure the documents are accurate?

Task 25: Question 2

If there is a guarantor involved, what type of professional should you recommend the client refer their loan contracts to prior to signing and why is this so important? Include which code you would be adhering to in doing so. (20 words)

Task 25: Question 3

The clients have chosen to sign their contracts with you, in your capacity as a broker. Describe how you would explain the loan offer and security documentation to the client, as well as gain confirmation of their understanding of approval conditions of their finance.

Hint/Tip:

Include the sections of the loan offer that you would cover in your explanation to the client.

Refer to the topic notes and the sample Letter of Offer in the subject room.

Task 25: Question 4

(a) Now that the client has signed the documents, explain how you will submit the documents to the lender.

(b) Include a comprehensive list of the documents that the lender will require in order to proceed with settlement. This may also include lender-specific documents for the new loan account etc.

Task 25: Question 5

Explain to your client how you will communicate with them throughout the settlement process; include the method of communication and the timeframes. (This should be in line with the organisation service standards as outlined in the Toolbox.)

Task 25: Question 6

You have just received a call from the lender to advise the documents have been executed correctly. Describe how you will notify the client.