Latest / That Home Loan Hub / Rebuilding Your Financial Reputation: How Past Mistakes Affect Home Buying

Transcript

Rebuilding Your Financial Reputation: How Past Mistakes Affect Home Buying · That Home Loan Hub

• 0:10
  Speaker 1: Hello and welcome back to that Homelon Hub.
• 0:12
  Speaker 1: Today I'm finally joined by who?
• 0:18
  Speaker 2: Kunjai, everybody, hello kia, ora I'm Kunjai.
• 0:22
  Speaker 1: It's been so long, kunj, I've forgotten who you are.
• 0:25
  Speaker 2: Hasn't been too long, I think.
• 0:26
  Speaker 2: What two weeks that I haven't jumped onto the podcast.
• 0:28
  Speaker 2: Yeah, we missed you yeah.
• 0:30
  Speaker 1: What have you been up to?
• 0:31
  Speaker 1: I've been working, you've been working, you've been working hard, we've been working.
• 0:34
  Speaker 2: You've been working, you've been working hard, we've been working hard, we've been pumping out some numbers.
• 0:37
  Speaker 2: Actually it's been busy, it has been absolutely busy.
• 0:40
  Speaker 2: We're getting some traction.
• 0:42
  Speaker 2: So our clientele is actually, you know, picking up.
• 0:44
  Speaker 2: People are hearing more about us and things like that.
• 0:47
  Speaker 1: So it's great, yeah.
• 0:50
  Speaker 1: So big shout out to our listeners.
• 0:50
  Speaker 1: We're getting more and more people coming to us saying they've heard us on a podcast, yes, so obviously this message is working.
• 0:57
  Speaker 2: Radio.
• 0:57
  Speaker 2: They've heard us on the radio as well.
• 0:58
  Speaker 2: They've heard us on the radio, yeah.
• 1:01
  Speaker 1: So let's talk about something that we've come across recently, and I think that's important for others to know.
• 1:07
  Speaker 1: Right as we've been discussing what's of interest to our listeners and something cropped up what do we want to talk about today?
• 1:13
  Speaker 1: Conch?
• 1:14
  Speaker 2: I thought we'd talk about credit scores again.
• 1:18
  Speaker 2: I think we touched on it a wee while back, but I thought we'd just refresh ourselves and our listeners again on that.
• 1:28
  Speaker 1: Yeah, credit scores, because what we've recently discovered is we had this beautiful couple.
• 1:33
  Speaker 1: We really wanted to help them and the only thing that really let them down was the credit score.
• 1:39
  Speaker 1: Look, this episode we're going to call it dumb stuff Kiwis do that affects their credit score, and how can we help them?
• 1:48
  Speaker 1: And look, all of us have been there, right, when you were younger, when I was younger, we all did some dumb stuff.
• 1:52
  Speaker 1: But how do we make it better?
• 1:55
  Speaker 1: How do we get out of it?
• 1:57
  Speaker 1: How do we move forward?
• 1:58
  Speaker 1: so this episode is dedicated to those that are feeling in that boat.
• 2:02
  Speaker 1: No judgment whatsoever, but pure education for you to know what to do.
• 2:08
  Speaker 1: Yeah, better in life, really.
• 2:09
  Speaker 1: So let's unpack this particular case.
• 2:12
  Speaker 1: They came, came to us.
• 2:14
  Speaker 1: They have got really good jobs Yep Right, good incomes, awesome.
• 2:18
  Speaker 1: But they had some problems a few years ago and things got out of control.
• 2:25
  Speaker 2: Yeah, and it was an unexpected event, unexpected event.
• 2:30
  Speaker 1: And, unfortunately, a few bills got forgotten about.
• 2:34
  Speaker 1: Or there was a situation of where they moved addresses and he thought she paid.
• 2:39
  Speaker 1: She thought he paid and nothing got paid and it went to debt collectors.
• 2:43
  Speaker 1: When they found out, they actually did a good thing.
• 2:46
  Speaker 1: They paid it off straight away, they made it right and that was a good thing to do.
• 2:51
  Speaker 1: But when they found this house they wanted to buy and they only have 10% deposit, we really struggled.
• 2:59
  Speaker 1: We really really struggled to get them across the line.
• 3:01
  Speaker 1: And this is where the message is.
• 3:07
  Speaker 2: Pay your debt, keep on track of your bills, your credits.
• 3:12
  Speaker 2: Obviously, you know you borrowed that money to purchase some sort of asset or something like that, right?
• 3:19
  Speaker 2: So you've got that asset that you still got to pay for.
• 3:22
  Speaker 2: You can't just go by and be like, ah, nevermind, I'm not going to pay for that iPad or that car that I've just ticked up, because it does affect your credit rating, and we've seen this firsthand a couple of times with our lovely couple, as well as other clients that we've helped as well.
• 3:46
  Speaker 2: So I guess my main message is to, if you are struggling to pay those you know loans and credits and things like that, talk to the provider.
• 3:57
  Speaker 2: They have a special team that actually can talk you through, set up payments plans and things like that, so don't feel embarrassed about approaching them because they are there to help you.
• 4:12
  Speaker 2: I think they would rather help you make those plans to eventually, you know, pay, whether it's $20 a week with them, rather than you going to make a plan and pay $20 with Baycorp or a debt collection agency.
• 4:27
  Speaker 1: So the main takeaway really is don't let it go to the Baycorp or debt collection agencies.
• 4:32
  Speaker 1: Make a plan with your current finance provider because they can help you, but just don't disappear on them.
• 4:41
  Speaker 1: Don't bury your head in the sand.
• 4:42
  Speaker 2: Answer the phone when they ring you, email them, when they email you and just let them know, because they understand that life events happen.
• 4:51
  Speaker 2: You know, things happen.
• 4:53
  Speaker 2: You experience sudden loss, sudden illness, loss of jobs, things like that it does happen and those you know.
• 5:05
  Speaker 2: There's a special team set up in those organizations to actually help.
• 5:10
  Speaker 1: There are mechanisms in place in those organizations to help you out.
• 5:15
  Speaker 1: So don't hide away thinking, oh my God, it's so embarrassing.
• 5:18
  Speaker 1: What would be embarrassing is when you do find that dream house that you wanted to buy and then you can't buy it because your credit check is really bad.
• 5:27
  Speaker 1: So, with this couple in particular, we managed to get them across the line under the Kayanga order, which is really bad.
• 5:34
  Speaker 1: So, with this couple in particular, we managed to get them across the line under the Kayanga order, which was really interesting.
• 5:38
  Speaker 1: So, because we've presented them this whole story and this is, I guess, where the power of mortgage advisors come into play, because we fight in your corner for you.
• 5:43
  Speaker 1: So we had to, you know, write some big stories and present your case in the best possible light.
• 5:49
  Speaker 1: So the lender sees not just a name and a number in front of them, but they see the story of what actually happened to you and how you overcome that.
• 5:57
  Speaker 1: And with this couple in particular, one of our providers was very, very kind and they said they will look at it, they will get them across the line.
• 6:05
  Speaker 1: So that was really cool.
• 6:05
  Speaker 1: And I guess the message is you know, some miracles happen.
• 6:10
  Speaker 1: Yes, it can happen, but you need to do the hard work as well, you need to show that you've learned your lesson, that you're not going to repeat the same mistakes.
• 6:19
  Speaker 1: And then, if you are getting yourself into any debt, that you will be responsible for that debt.
• 6:25
  Speaker 1: Yeah, not to repeat the same.
• 6:27
  Speaker 1: Yeah, not to repeat the same actions from five years ago like, whatever you do in your 20s can be forgiven, but if you keep making the same, mistakes in your 30s and your 40s repetitive pattern.
• 6:39
  Speaker 1: That's another story yeah, and this is where usually the lenders are not going to look at you favorably, like if it was a one-off event because you know something happened in your life, cool we understand, we get it.
• 6:51
  Speaker 1: But if it's a one-off event because you know something happened in your life, cool we understand, we get it.
• 6:55
  Speaker 1: But if it's an ongoing thing that you keep doing every five to seven years, then definitely not a good.
• 6:58
  Speaker 1: And remember one thing as well that people forget is, even if your credit check shows clear, if there is nothing on your credit check, the banks have a big memory right.
• 7:09
  Speaker 1: So on your file there will be notes.
• 7:12
  Speaker 1: So let's say you had a loan with Westpac, a personal loan with Westpac.
• 7:15
  Speaker 1: You didn't pay it off back in 2003,.
• 7:17
  Speaker 1: And then you've changed from Westpac to BNZ.
• 7:20
  Speaker 1: Now you've screwed things up with BNZ and we can't go to BNZ, asb, anz, whatever.
• 7:25
  Speaker 1: And then we try to go back to westpac.
• 7:31
  Speaker 1: The westpac will remember and they will have a file, they'll have records, they'll have a note on your file to say that they wiped off your debt.
• 7:35
  Speaker 1: And if the debt was significant, if it was, like you know, 15 000 or 20 000, and you haven't tried to pay that back to them, um, the chances of you getting a mortgage with them is none to zero.
• 7:47
  Speaker 2: I think what they call that is undesirable.
• 7:52
  Speaker 1: Yeah, so remember that.
• 7:53
  Speaker 1: So I know sometimes clients come to us and they go.
• 7:55
  Speaker 1: You know we've done something in the past but it's all gone.
• 7:57
  Speaker 1: It's not on my credit score.
• 7:59
  Speaker 1: But if you don't tell us that that was with that particular bank and we go to that bank, it will come up.
• 8:06
  Speaker 1: We will find out.
• 8:07
  Speaker 1: So be as much upfront as possible with your advisor.
• 8:11
  Speaker 1: We are in your corner.
• 8:13
  Speaker 1: What we don't like is being blindsided by the bank.
• 8:17
  Speaker 2: The more you tell us, the bitter, because we fight for you.
• 8:20
  Speaker 1: Then yeah, yeah, yeah so that's the biggest takeaway.
• 8:23
  Speaker 1: So we're gonna wrap up this fun episode of credit check Credit check and debt collectors and everything.
• 8:31
  Speaker 1: And everything, debt.
• 8:33
  Speaker 1: So make sure don't make those mistakes and look.
• 8:36
  Speaker 1: If you do need any help, feel free to reach out.
• 8:38
  Speaker 1: You know we don't cost anything and we're here to help you to get ahead, because planning is the key.
• 8:43
  Speaker 1: You know, even if you don't want to buy a house this year, but you're going to buy a house in the next few years.
• 8:47
  Speaker 1: No-transcript.