- In First things first - Steps before applying for finance, Tricks of the trade - how banks fool borrowers
I’ve seen a lot of things go wrong when clients have gone directly to the bank – coming to me to help them out of their dilemma.
Whats surprising is, many of you wont even know you have a dilemma, or that you have other options because your bank wont tell you!
I’m not just talking about getting a better interest rate here, I’m referring to a recent situation where a client was told they were approved for an 80% lend for their intended purchase. They did not have genuine savings and the bank they approached had no intention of telling them that they had other options besides saving up $150,000 before being able to buy a home!
Many clients require 95% borrowings, particularly first home owners. The sad thing is, that the banks that I have had direct customer feedback from, don’t go out of their way to help customers with a suitable plan to get them into their home sooner. They think that by giving a pre-approval that does not suit your requirements that this is how they can lure you as a customer.
A much more honest approach, which we use, is to advise customers of multiple options and allow them to choose what is most suited to them. For example, in this particular instance, the customer did in fact qualify for a 95% loan – just not with the bank that they had originally approached, whom was more than happy to process their application without discussing the customers needs, and subsequently marking their credit file.
Luckily the customer was directed straight to Bee Finance Savvy after this experience with their bank, and did not make the mistake of shopping around with multiple lenders –which can have devastating affects on your credit file and your ability to get a loan.
Working with over 30 trusted lenders, we know the banks policies inside and out and wont waste your time or damage your credit file by putting multiple applications in that don’t suit your needs!
If you have been renting for over 12 months, you still qualify for *genuine savings – but only certain banks will accept this rental evidence.
Other options include 95% borrowings for non genuine savings holders, those whom have not been renting – but nonetheless you may still qualify for 95% borrowings, rather than the 80% that may be just too far out of your reach.
If you would like to know your options for purchasing a property, and don’t want to be led astray, call Bee Finance Savvy on 1300 140 554 for a complimentary consultation to see if you are home loan ready. And if you are not, we will work with you to form a plan to set you on the right track so that you will know exactly what steps you need to take to get you there!
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