If you find errors in your report, you can get them corrected. You can also take steps to improve a ‘poor’ rating by clocking up a period of consistency and reliability.
4. You don’t have a big enough deposit
Lenders like to see that you’ve saved a deposit of at least 10% to 20% before applying for a home loan.
But all too often people forget to factor in additional funds for other expenses such as stamp duty, lender’s mortgage insurance and removalist costs.
That means, for example, if you have saved $70,000 for a $700,000 loan, you might want to keep saving for a little while longer before you apply for a loan to factor in those other expenses.
5. Your employment situation
Even if you tick all of the boxes above, lenders may also reject your loan application if you haven’t been in your job long enough. And if you’re unemployed, they can’t approve it full stop.
Those who are self-employed are also running into headwinds. Lenders are becoming increasingly hesitant to approve loans unless a steady and reliable income stream can be proven. That said, there are lenders who are more flexible when it comes to self-employed workers, and we can help guide you towards them.
How we can help
We help people who are seeking a home loan overcome all of the above hurdles on a daily basis.
So if you or someone you know has recently had a home loan rejected, or you simply want to nail it the first time, get in touch.
We’d love to help you navigate the tighter lending standards to make your dream of home ownership a reality.