How finding the right loan could affect your credit rating.
When looking for a home loan, it certainly pays to look around to see what options are available.
For example, some lenders have lower rates whilst some will lend more than others, all depending on your individual circumstances. By checking out a few lenders you can get a good idea of what you may be able to borrow.
Did you know however that when assessing you situation, most lenders will first conduct a credit history check? And did you know that this check itself becomes part of your credit history?
Recently we had customer come to us to for a homeloan after their own bank had declined their loan application due to their credit history.
The client obtained a copy of their credit history and there was no defaults listed. So why was the loan declined?
The credit report also includes any enquiries made by financial institutions, whether for a home loan, credit card or even the “interest-free” cards used by retailers.
Our customer had 23 credit enquiries in 4 years, 10 of those in the last 8 months.
Too many credit enquiries on your credit file can mean that the lenders will see you as a “high-risk” borrower and therefore not willing to approve your loan. They will question the reasons why so many enquiries were made and hold concerns that these loans may have been declined for reasons that they are not aware of.
There is still a way of looking at what options are available without affecting your credit rating.
A good mortgage broker will meet with you to understand what you are looking for in a home loan. They can then assess your situation and compare products from a number of different lenders all without having to conduct a credit check.
Call Fiona Manley at Mortgage Choice Noarlunga today to help you find the right option for you.
Fiona - 0421 360 205