March 18, 2016
My bank said No… What now?
One very frequently asked question we hear is – “Our bank said no, what do we do now?”
This is way more common than you may think and often leaves people scratching their heads.
Some statements we often hear are:
“I have banked with them for years, I have never had any issues”
“I have always paid things on time, even making extra repayments to my home loan, why is there a problem now”?
“We can afford the extra amount no problem, why can’t the bank recognise this?”
If you are looking for a Home Loan and your bank has said no - what can you do next?
Don’t get disheartened
It can be a real let down when you are told no, but it’s really important to remember that just because your own bank has said no doesn’t mean you have no chance obtaining your home loan with another lender. We do hundreds of home loans in Penrith and the surrounding area for clients that first received a no from their current lender. Sometimes we have a mindset that if our current bank says no then there is no point or chance with any other provider. The thing is – that’s just not true.
The next step is to understand why your bank said no. What this does is give you a clear snapshot as to the reason you have been declined. This then allows you to begin research and understand that there are other lenders that may not have that specific lending criteria. Different lenders require different things. There are certainly many aspects to take into account.
Questions arise such as:
Have you been on Maternity Leave? Are you self-employed? If yes, how long have you had the business? How many tax returns do you have? How many dependants do you have? What amount of deposit do you have? How much equity is in your home? Have you worked at your current place of employment for more than 12 months? If no, are you in your probationary period? What are your other liabilities?
This is really just the tip of the iceberg, and for most people, unfortunately, it can seem a little overwhelming as to what to do next. This then brings me to my third point.
Talk to a Mortgage Broker
Have you made an appointment with a Mortgage Broker in Penrith or in your local suburb? Once you know why your bank said no the best thing to do is to speak to a professional who can examine your situation and help steer you in the direction of a lending institution that you might give you a better chance of getting your loan across the line. They can work with you to make sure you’re presenting all your information in the best possible light and then help by sorting through the hundreds of loans available in the today’s market.
Here at Mortgage Choice Penrith we work with over 28 lenders and hundreds of products. Using our service comes at no cost to you. You also have the peace of mind that we will recommend the right product for your situation as Mortgage Choice pays their brokers the same commission regardless of the lender or product.
Work with your broker and make an application
Once you have all the information presented to you and your broker has shown you what options are available it is then time to agree on a product, and make your application. At this point you probably have most of your documentation ready which you originally presented to your bank. Sometimes different lenders require different documents or something extra than your bank had asked for.
Once you have the documents your broker will build the application, take care of all the paperwork and follow up with the lender every step of the way. This should take a bit of the stress off and your broker should give you regular updates so you are always kept in the loop as to what stage your application is at.
If you have any further questions please do not hesitate to give us a call. We have been able to help many of our clients achieve their loan after their bank said no and it would make us very happy to do the same for you!
Mortgage Choice Penrith
Paul Holland – Nepean Village
02 4737 8499