Have you done all the research and still aren’t sure if you can get approval for a home loan?
A home loan application is more complicated than you think! Getting approved can be tricky so it’s best to have an experienced specialist working with you.
Find out about the most common reasons why loan applications are declined by the banks and how we can help.
Don’t risk getting your loan declined!
Did you know that 40% of home loan applications never get funded? Don’t risk it!
Our brokers have seen it all! With their level of experience and expertise, they are aware of all the potential issues with your loan application and how to mitigate them when applying with a lender.
We have a vast array of lenders on our panel and our brokers know their lending policies inside-out.
Blindly applying with any lender online can seriously damage your credit file as the banks are less willing to lend to those with several loan enquiries on their credit file.
We have our own in-house assessment process which we complete before applying with any lender. This means that we won’t apply with a lender who cannot approve your loan!
What if the bank doesn't understand your situation?
Our brokers have the knowledge and experience to communicate with the banks effectively and argue your case for you!
Not only that, but if one bank just can’t accept your situation we are not limited by this. We don’t just have one set of policies to work with, but have a variety to choose from as well as the skill to match your needs with the right lender.
Our brokers are used to dealing with tough scenarios and have the ability to think outside the box.
We know how to present your application to the banks and get it approved! Speak to an expert today by calling us on 1300 889 743 or fill in our free assessment form.
Why do I need a broker if I can apply with my bank?
Did you know the best interests duty doesn’t apply to banks!
As mortgage brokers, we have to follow the best interest duty; however, the banks do not. In other words, we must always act in the best interests of borrowers; however, if a customer goes to a bank directly, then the bank can act in their own interests and not those of the borrower.
Moreover, we make sure that we take your full situation into account and provide a complete solution.
Your bank might approve a loan for you to buy vacant land but then not approve the construction loan when you want to build a house on it!
Our brokers will look at your needs now as well as your future plans and ensure that we get you the best loan for your needs.
Have you ever dealt with a company that had pretty marketing, yet couldn’t deliver?
There are many lenders that are just like this. We have worked with over 40 different lenders and know which can get the job done and which are going to risk you losing your deposit due to delays in approving your loan. We can also work completely online.
Just how complicated is a home loan application?
Did you know that an average application will have at least 20 different companies touch the file?
Before the bank even gets involved you’ve got a Mortgage Broker, an Aggregator and a software provider – just to lodge your application!
Once your file reaches the bank’s online system, they will deal with a valuation management company, a sub-contracting valuer and a credit reporting company.
If you are borrowing over 80% of the property value, then the bank will need to get approval for your loan from a mortgage insurer who can still decline your loan at the eleventh hour!
After your loan has been approved, the bank uses a solicitor to produce the loan offer and then a settlement agent to fund the loan.
We will deal with the banks and other third parties on your behalf and keep you in the loop!
The operational process of funding a loan is like a conveyor belt in a factory. When your loan falls off of the belt then it is our job to understand how the factory works, and to be the person who puts it back on track.
Valuation shortfall
One of the most common problems people face when applying for a home loan is a shortfall between the purchase price of the property and the amount that the bank values the property for.
Banks and lenders will always have their own independent valuation completed to confirm the value of the property before accepting it as security for a mortgage.
What if the bank values your property for less than what you’re buying it for?
We can order valuations up front with over six lenders!
We can find out what the banks think your property is worth before applying with them.
This means that we won’t damage your credit report by having too many enquiries and there won’t be any nasty surprises, like having to come up with thousands of dollars to complete the purchase.
Talk to one of our specialist mortgage brokers about your situation and find out if you can get approved. Call us on 1300 889 743 or fill in our free assessment form.
Credit scoring
Can you believe that your loan could be automatically declined without ever being assessed by a person within the bank?
Most lenders use an automated online system to allocate a risk score to applicants. It is calculated based your credit history, employment, stability, income and the type of property used to secure your loan.
They prefer to lend money to those who are in a stable position and most likely to repay their debt and stay out of financial trouble.
However, different lenders will assess your circumstances in various ways. We know which lenders will view your situation more favourably!
Our mortgage experts are aware of which lenders use credit scoring and which use a more common sense approach to assessing your application.
We understand how credit scoring works and how a lender is likely to interpret your application.
Complex policy catches
The lending policies of the banks are complicated and vary greatly from institution to institution. Don’t have time to research it yourself? We’ll do it for you!
Our brokers will identify any elements of your application may be an issue to the lender. We have the experience to know which aspects will clash or cause problems when combined.
For example, a bank might allow someone to apply for a construction loan, and their policy also allows loans in trusts, however they might not approve a loan if the two are combined.
Even the property used as security can cause your loan to be declined. A lender may decline a home loan to buy commercial property even if the loan is secured by residential property.
The list goes on! We know how to balance the risk of your application and sell it to the banks.
Call us on 1300 889 743 or fill our online enquiry form and discuss your situation with an experienced mortgage broker.