Reasons Your Home Loan Finance Could Get Knocked Back By A Bank
Understanding and navigating applying for a home loan can be really daunting for a lot of people, and there’s a lot of things people don’t know to consider when they’re saving for their home loan deposits. Banks are also tightening on lending so it’s really important you have everything in order to put your best foot forward to avoid any ‘gotcha’ moments.
We always recommend speaking to an expert, it’s the best way to do this. They can help with all the heavy lifting and guide you through the whole process. Our finance experts work with all types of customers with different requirements, and because they have built relationships with all kinds of lenders, they’re able to present your financial situation in a way that gives you the best shot at getting your loan.
We wanted to share some things to keep in mind that can impact your home loan application.
Your credit rating gives lenders an indication of what kind of borrower you will be, and this rating is affected if you’re doing multiple credit checks through different brokers. Banks see this and don’t view you as a serious applicant. Our inhouse finance experts will look at your financial situation and have a good indication of whether we can move forward with finance, and only then will they do the credit check. We’ve got access to so many lending products and builders and we know who to go to for different financing options.
Zip Pay and Afterpay
Whilst buy-now-pay-later services like ZipPay and Afterpay can be really convenient, when it comes to your home loan application they can have negative implications. A lot of lenders are tightening and are asking people to disclose how much you’re owing. They’ll also be looking to make sure that if you do use the services, you’re making repayments in a timely manner and avoiding any fees and charges for late payments.
Sportsbet And Other Gambling Services
When lenders see gambling services like Sportsbet on your recent bank statements, you could be expected to explain the spending to them which can become a headache. If you’re wanting to have a responsible punt, we recommend you do so with cash.
Too many credit cards
Yes, it’s not just your credit card limit that affects your ability to get a loan. The number of credit cards you have can impact your ability to get a home loan. Every time you apply for a new card, creditors can make an enquiry into your credit report, and every time this is done it lowers your credit score.
Defaulting on your bills
Defaulting on your bills does have a negative impact on your home loan eligibility and they also decrease the amount you can borrow. The good news is that our finance experts can make recommendations to pay off your defaults and any credit cards to give you the best shot possible at getting the loan.
Our finance experts are well equipped to give you the advice you need and guide you through the whole process when applying for your loan. We want you to have a seamless experience to get you into your dream home as soon as possible. Get in touch today and speak to one of our experts.
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