If you have been turned down time and again when applying for a home loan, take note – you are not alone. There are ways of increasing your chances of getting that dream home you have had your eye on. You don’t have to fight this on your own; a bond originator will be able to assist, guide and do all the running around on your behalf. It takes a LOT of time and much effort to investigate, submit and compare packages, prices and a whole host of other paraphernalia from a plethora of banking institutions when applying for a bond.
What can be done to increase your chances of getting a home loan, even though you might feel that you have done everything in your willpower to ensure that you are bond-ready – but are you really bond-ready?
Few applications are successful; although the financial institutions are keen to increase their bond business but the growth is really, really slow.
Here are a few things that you need to do before you apply for a home loan:
- Your credit score is based on all past and present financial behaviour towards your creditors – ensure that this is squeaky clean before approaching your home loans advisor.
- A low credit score is usually the reason why a loan is turned down.
- Balance owing on all your credit accounts, what kind of accounts you have and how you treat them are all taken into the equation.
- You will also need to find out if there are any discrepancies or mistakes that appear on your credit record; if this is the case, you need to rectify this by putting this in writing.
- How many years have you been a borrower – the longer you have a credit history, the better it looks on your credit score.
- What is a good credit score? Customers with a score below 620 will find it more difficult to get a loan or bond.
- The reverse also applies – scores of 620 and above have a strong chance of getting you that much-needed bond.
- Defaults remain on your credit profile for two years and any and all judgements against a person will remain on the profile for a five year period.
There is absolutely no place to hide in today’s world of electronic information shared by companies, so it is important to ensure a good record at all times. When applying for a bond your home loans advisor will be able to assist.