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Transcript

No Means "Not This Way": A Mortgage Advisor's Guide to Rejection · That Home Loan Hub

• 0:10
  Speaker 1: Today's episode is one I wish more people heard before they give up on their dream of owning a home.
• 0:15
  Speaker 1: Let's talk about what happens when your loan application is declined and, more importantly, what to do next.
• 0:22
  Speaker 1: First of all, if you've been declined by a bank I want you to hear this clearly it's not the end of the road.
• 0:29
  Speaker 1: Too often people get that one no and think their chances of buying a home are gone.
• 0:36
  Speaker 1: But most of the time it's a matter of understanding why it happened and taking the right steps to improve your position.
• 0:43
  Speaker 1: So why do banks say no, let's break it down.
• 0:47
  Speaker 1: There are usually a few main reasons a bank might decline your application.
• 0:51
  Speaker 1: The main one that we usually get is a credit history, so missed payments, defaults or too many short-term loans.
• 0:59
  Speaker 1: We also have income issues Not enough stable income or your income is too variable.
• 1:05
  Speaker 1: Too much debt, including car loans.
• 1:08
  Speaker 1: Afterpays, credit cards yes, even the ones you don't use.
• 1:12
  Speaker 1: Insufficient deposit, especially if you're applying with less than 20% deposit and a most common one when you already found the property is unsuitable property for the bank.
• 1:25
  Speaker 1: So the home does not meet the bank's criteria and sometimes it's just the wrong bank for your situation.
• 1:34
  Speaker 1: So what to do immediately after decline.
• 1:36
  Speaker 1: First, do not panic and please don't start applying at 10 other banks on your own.
• 1:42
  Speaker 1: Every application hits your credit file and multiple hits in a short period can lower your credit score even more.
• 1:50
  Speaker 1: But instead ask for a clear reason for the decline.
• 1:53
  Speaker 1: Get it in writing, if possible.
• 1:55
  Speaker 1: Check your credit report you can do this for free in New Zealand via Centrix or Equifax and then, of course, talk to a mortgage advisor.
• 2:05
  Speaker 1: And yes, this is where I can come in Now how a mortgage advisor can help.
• 2:11
  Speaker 1: This is not just about shopping around for a better deal.
• 2:14
  Speaker 1: It's about strategy and, as a mortgage advisor, I'll look at the strengths in your application, which lenders are more flexible with your profile, including second tier lenders or non-banks if we have to and how can we build a short-term action plan if you're not quite there yet?
• 2:30
  Speaker 1: And sometimes we set a three or six months fixed plan, like clearing your debt, boosting the savings or getting more stable income, and then reapply with a much higher chance of success.
• 2:42
  Speaker 1: A quick success story.
• 2:45
  Speaker 1: So one of my clients let's call her Maria came to me after a major bank told her no, she was a single mom running her own small business and the bank didn't like the self-employed income.
• 2:58
  Speaker 1: We worked together to restructure her debt, tighten up her business financials and submit it to a different lender that understands self-employed borrowers better.
• 3:07
  Speaker 1: Four months later, she had the keys to her first home.
• 3:10
  Speaker 1: And no does not mean never.
• 3:13
  Speaker 1: It just means not this way.
• 3:15
  Speaker 1: So if your loan was declined, don't carry the shame or fear.
• 3:20
  Speaker 1: It's a signal, not a sentence.
• 3:23
  Speaker 1: It just means it's time to get smart, build your plan and work with someone who can guide you through this maze.
• 3:29
  Speaker 1: I'm here for that and I'm only a message away.
• 3:32
  Speaker 1: Thanks for tuning into the Home Loan Hub.
• 3:34
  Speaker 1: If this episode helps you or someone you know, share it, subscribe it and leave me a review.
• 3:39
  Speaker 1: It helps more people find their way home.
• 3:41
  Speaker 1: See you in the next episode.