Almost everyone wants to get a good interest rate when they’re looking for a home loan. A lot of lender advertising is heavily based on interest rates. It’s also a point of competition between lenders.
So it’s easy to see why many people shop around for the best interest rate.
Unfortunately, when some people do this, they go about it the wrong way. They go to multiple lenders, and apply with each of them, to see which one will give them the best rate. This can seem like a foolproof plan. People think they can do this, and simply not follow through with the applications that don’t have the best interest rate.
Why this method won’t get you a good interest rate
Every time you put in an application, you will get a credit file mark. This happens even if you don’t actually take out the loan. If you apply to multiple lenders, you’ll get multiple marks on your credit file, within a short amount of time.
This is a huge red flag to lenders. In fact, lenders look so unfavourably on this, that when they notice these credit file marks further on in the application process, they are are highly likely, sometimes certain, to reject the application.
So where does this leave you, if you try to find a good interest rate this way? You’ll get multiple marks on your credit file, and have numerous lenders who’ve rejected your applications. This then makes it incredibly difficult, if not impossible, to get an approval.
At Bee Finance Savvy, we do the shopping around for you
As an experienced brokerage, Bee Finance Savvy has access to the application calculators of over 30 lenders. We assess whether your application can be approved, without marking your credit file!
This of course, means that we’re able to determine what your options are in regards to interest rates. However, sometimes it may turn out that a customer actually has limited options for approval. Then the more important determination becomes, which lenders the customer is actually eligible to apply through. In this situation, it’s absolutely crucial to have your situation assessed up front. Unnecessary marks on your credit file may leave you with no lenders willing to consider your application.
If you’ve put in multiple applications and got declined, there is a possibility that Bee Finance Savvy can help. In some circumstances, we’re able to match customers in this situation with non-mainstream lenders who can approve them. However, we still strongly recommend that you never put in multiple applications with different lenders. Instead have your situation assessed without getting credit file marks.
To take advantage of our free consult service, get in touch with our Sutherland Shire broker, Desiree. You can call or text Desiree on 0455 131 937 or 1300 140 554. You can also email her at firstname.lastname@example.org . Desiree works with customers all over Australia.
If you’d like to read what some of Desiree’s customers have to say, check out our WOMO reviews. https://www.wordofmouth.com.au/reviews/bee-finance-savvy-miranda