How to get a loan when you don't tick the boxes

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If you work for yourself, earn an inconsistent income or have a less than stellar credit history, obtaining an approval on your home loan application can be a difficult task. 

We turned to mortgage broker Medine Simmons from and posed the all-important question: how can you get a home loan if you’re a non-conforming borrower?

With a decade of experience helping both would-be homeowners and investors to secure finance, Simmons says there are several steps non-conforming borrowers can take to boost their chances of receiving a coveted loan approval.

1. “Show willingness to repay”
There are many reasons why you may have had credit difficulties in the past, so the most important thing you can do is to show a willingness to work with creditors and an understanding of your obligations. “Make sure all outstanding bills are repaid and arrange payment plans where necessary,” Simmons advises, “and get all agreements in writing.”

2. “Be very open about your situation”
“More is definitely more if you've had repayment issues in the past,” she says. “Explain the situation exactly, and explain the extenuating circumstances that lead to them. Explain the actions that you took to rectify the situation and stress that you understand your obligations and that you now have everything in place to make sure that you meet them.”

3. “Set your paperwork out clearly”
Make sure that records are clear and that you present your asset, liabilities and income carefully so that it's easy to follow your situation. “Emphasise the asset side of your application, so that you're putting your best foot first,” Simmons suggests.

4. “Seek out an expert”
If you don’t find the mould of a standard, every day borrower, don’t approach your bank directly and instead seek out expert advice. “Some lenders are specialists in dealing with non-conforming lenders. Finding an expert in this area can ease the process and guide you down the right path.”

5. “Shop around”
Non-conforming lending is an area where it “definitely pays to shop around”, Simmons says. “Don't panic and ask for all the costs before you proceed with an application.”

6. “Enquire a lot, apply seldom”
Your credit history shows how many times you've applied for a loan, so don’t apply with several different lenders to try your luck, as this can actually have the impact of further tarnishing your credit profile. “Too many applications show a chequered history, so make sure it's the right loan for you before you make an application,” Simmons says.

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

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