Whether you’re financing your next home, funding your investment property, refinancing or applying for your first loan, our expert mortgage brokers have decades of experience in the field. In fact, some would say, they’ve seen it all when it comes to client loan applications. Which is great news because it means they have a wealth of insider secrets to help you avoid being rejected by the banks and for getting your loan approved. Below are 7 of the best…check them out!
- Be Prepared- Have all of your documentation ready and available to avoid delays or issues with your application. If you are not sure what’s required, ask your mortgage broker and never apply for a loan if you’re not well prepared.
- Stay Put- If you know that you’re going to apply for a loan over the next 3, 6 or even 12 months do not change jobs, cut your hours, go casual or temporary, switch businesses, or suddenly start a new company. Lenders like stability and a steady track record and will request evidence of continual employment as well as business results of up to 2 years, if self-employed.
- Honesty is the Best Policy– Do not, under any circumstance, lie, fib, omit details or fail to include relevant financial information on your application. Because the banks will find out and they do not like discrepancies, surprises or deceitful applicants.
- Don’t Check Your Credit Score- Banks do their own internal credit scoring on each loan applicant and it’s a little known fact but every credit enquiry you make registers as a negative mark against your credit score. So avoid making credit enquiries as this is not viewed favourably. Instead, have your broker do this on your behalf as this will not impact your credit history.
- Your History Counts- Banks see past behaviour as a good predictor for the future and with centralised credit analysis everything counts. So maintain a good credit rating at all costs. Which means paying your loans, bills and credit cards on time, as well as not exceeding your credit limits and demonstrating proof of savings. Banks will check up to 12 months of your statements and your credit history to verify this.
- Snow White Spending- Be mindful of your spending habits and keep them clean for a minimum of 6 months prior to applying. Lenders do not like seeing questionable spending on credit or debit cards such as regular withdrawals of cash at the Casino, which could indicate a gambling issue, or constant large purchases from liquor outlets, which could demonstrate a drinking problem. Also, don’t suddenly open new credit card accounts or spend erratically.
- Different Strokes for Different Folks- Understand that not all lenders are the same. In fact, some lenders specialise in different areas of lending. This means that just because you have your own business, are self-employed or had an issue with credit in the past that you won’t be approved. Speak with your broker and explain your situation so they can recommend the most suitable lender.
If you have any questions or need help with your loan application, call us today.