Are you having difficulty getting finance from the banks? Heidi Armstrong, Director of Operations at State Custodians Mortgage Company looks at what you can do.
Hi I'm having a hard time getting a home loan and I'm just wondering is there's a way where I think of more likely to be approved?
Heidi Armstrong, Your Mortgage Expert (Director of Operations, State Custodians Mortgage Company:
First of all let me share a word of caution. Every lender out there makes money by lending to people who will pay it back over time. They lose money by lending money to people who don’t pay it back. And that doesn't mean that life is pleasant for those who default on their re-payments. At the end of the day you and the lender are on the same side. It's in everyone’s interest for them to lend you only as much as you will be able to repay. So, consider the reasons given by the lenders as to why they are knocking you back and work out whether or not that makes sense.
If you are convinced that you are truly able to make the repayments on the loan with a bit of a safety cushion. Then there are somethings that may be able to help you. Some of them are obvious such as giving enough time to be established in your job, demonstrate the ability to accumulate savings and avoid defaulting on your present obligations. You may want to check your own credit rating to make sure there is nothing there to cause issues. If you find something, contact the other party involved and sort it out.
In some circumstances you maybe able to be approved for what’s called a low doc or a non-conforming loan. With those loans you do pay a higher interest rate and they maybe tighter limits on the loan to value ratio. You can get around a lot of the issues that would normally be a show stopper for your loan approval. Hopefully in time you will be able to demonstrate the things that will allow you to be approved to refinance in a loan with a lower interest rate.