Find the Right Lender that Suits You
In all my years as a Mortgage Adviser the one thing I have noticed is that when people go to their bank and get knocked back they often give up as they don’t know where else to go. Does this sound like you? Was it the property location ,the acreage size or did they tell you it was due to something on your credit score or maybe they just told you that you would need more deposit .Please don’t give up there is usually a solution out there.
IS IT TOO MANY ACRES?
Here in the Hastings area we are going to come up against this quite a lot. We think that we would love the lifestyle change get out of the rat race and we see 105 acres in Kundabung, Byabarra or Pembrooke, it has a building entitlement and we plan to build the house of our dreams. The first port of call is to the bank we do all our banking .However we come out of there down heartened as they inform us that 25 acres is the most they will lend as residential lending and we need to talk to the business lending department .The catch is that the interest rate will be higher as they treat it as a farm and we just wanted a lifestyle change and don’t want to be farmers. Don’t give up there are Lenders out there who will look up to 125 acres under normal residential lending.
WHATS ON MY CREDIT REPORT?
Another one that comes up often is that there is an unpaid bill on your credit report. Usually the common reason is that you have moved a few times in the last few years forgot about it, mail did not get redirected and you had no idea that you had not paid some account. The other is often where a break up has occurred and you thought the other person was paying some of those items even though your name was on the account. Everyone should be aware of their finances however sometimes these things happen. The result when we then want to borrow money is that it then shows up and our lender says no! Some people give up ,there are specialised lenders out there that say we will look at the reason why it happened and how much it is for etc, I was talking to one Lender the other day and liked the way she said to me “ we allow one life event”, what a great way to put it.
IS MY DEPOSIT BIG ENOUGH?
This is the third item that I would say is the most common for being rejected by a Lender. You decide to have that chat while you are in the bank and you are feeling great as you have been saving hard and you have money in the bank. But no, the person you have spoken to says no you need to keep saving it’s not enough. That can be so discouraging but there are still Lender who will go to a 95% lend (be aware that you will get charged Lender Mortgage Insurance on any loan over 80%) but in a lot of cases it can be added to the loan. Or of course there are sometimes things like using a Guarantor to help you, or maybe using some gifted funds to top up your existing savings. These are all added options to helping you to get into a property and again some Lenders do them better than others.
I am only touching on a few of the most common reasons that people get knocked back for a Home Loan but I hope that you can see what I am trying to say is don’t give up! There a lot of Lenders out there and they all have their own niches, and while some are great in one area they may not be as good in another. This is why I would encourage you to chat to a Mortgage Adviser as most people don’t have the time to do the research to find out which is the Lender that will fit the bill exactly right for your circumstances .This is what a Mortgage Adviser does it is their job to sort through the Lenders for you and talk to you about the best option for you .How personal a service is that and all this comes at no charge to you .Could I suggest that you make that phone call today and maybe you will be able to put that offer in on the house of your dreams!