In most cases, people will have to take a mortgage to secure a home loan for the house of their dreams. In fact, if house pricing will increase in the near future, most people that wish to buy a home will have little options in terms of proper financing.
These being said, you should take a look at your credit score and make sure that you are eligible for most types of loans. Your finances may be in good shape and you may be, overall, in a good financial position – but a lender can deny your home loan application if your credit score is not good enough.
It goes without saying that your credit score is the most important element when it comes to the lending decisions of a bank or lender.
Credit score comes in the form of a document that shows the status of your previous debts. It basically shows the lender if you’ve paid back your debt on time – the credit score is based on your credit history.
Moreover, your credit score is affected by the frequency and number of loan enquiries. Also, it’s influenced by the missed and late payments. Naturally, several other financial factors will be taken into consideration by a lender when reviewing your loan application.
You should see your credit score as very important – especially when dealing with debt payments – because it affects your borrowing power. In short, a lender will take a look at your credit score and determine whether you are worthy of a loan or not.
However, a bad credit score doesn’t mean the denial of your loan application. For example, banks will assess your credit rating when you apply for a loan and, if the credit score is favorable, you will be able to secure a mortgage with little to no issues.
On the other hand, a bad credit score may come with a loan at a higher interest rate –if the lender doesn’t deny your application.
Basically, your credit score affects your ways of obtaining finance for securing the purchase of your future home. While there are lenders that will still give you a loan even if you have a bad credit score, that loan may come with higher interest or aspects that will put you in an unfavourable position.
Still, this is somewhat for your own good as well. If you haven’t been able to pay back your debt on time, the bank assumes that your finances are not “in shape” for the loan that you applied.
In short, they make sure that you won’t get into any trouble – while ensuring that they are not taking a risk by giving you a loan.
It goes without saying that you will have a hard time obtaining finance – especially when it comes to large amounts – if your credit score is not in shape.
Simply put, credit score can be seen as your borrowing power based on how you dealt with previous debt. A bad credit score will notify the lender that they are taking a medium to high risk if they decide to provide you with a loan.
Naturally, a good credit score means that they can safely accept your loan application at a lower interest rate. It means you’ve made a good impression, so to speak, and you will be able to pay it back on time.
No matter your credit score, feel free to contact our office if you have any more questions or require certain information. Our staff will be happy to help you and even guide you through the process of finding the best lender for your needs.
We will be more than happy to help you, in any way we can!
Contact us on 02 8530 1107 or Submit your scenario online
We meet for a consultation, obtain your supporting documents and proceed to structure and package your application for approval knowing exactly what the banks want to see. We also monitor your home loan post approval ensuring you’re home loan suits you and your financial position
We get paid a commission from our lenders as a result of introducing your business to them. Subsequently, our service is at no cost to you. Our commission does not affect your interest rate whatsoever, if anything, we’re in a position to get you a lower interest rate than the general public due to our relationships with our banks
With our many years experience in the industry, we’ve been exposed to both easy and complex loan scenarios. Each loan we process gets presented to over sixty financial institutions, ensuring we have explored all options possible and are able to provide a solution
Whether you’re a first home buyer looking at entering the market or an existing home owner looking at ways to save money on your home loan, we have you covered. We’ve put hundreds of hours of research into these guides to ensure you end up ahead, and it’s completely on the house.
When dealing with a home loan, you will most likely come across the Loan to Value Ratio term. Obviously, everyone who wants to apply for a home loan should consider this term and what it implies, as it affects your borrowing power.
The odds are that you’ve stumbled across the term lender’s mortgage insurance and you’re wondering what it stands for. Well, you’ve come to the right place. This article will clarify this term, so that you can understand what it is, the concept behind it and the approximate costs. Let’s get started!
In short, comparison rates determine what your loan will really cost you. They save you from the hard work required to compare and determine the costs of different loans. However, keep in mind that they shouldn’t be the deciding factor when you search for a loan.
Also, remember that all lenders are required by law to display a comparison rate when they advertise a loan to you. If you pay attention and spot this rate, you may end up getting a better deal on your home loan.
One in five Australians is self-employed. This means that there are quite some people here that are their own bosses and, in short, command over their very own businesses.
Of course, being your own boss sounds great and all, but there are a couple of things that may be uncertain for most self-employed people. For example, what do you have to go through in order to obtain a home loan?
When you have a mortgage that you have to pay off, you also have two ways of dealing with it.
The most common and simple one is, obviously, paying it off as soon as you can and never have to deal with it again. It goes without saying why most people out there that have taken a home loan prefer paying off their mortgage on time or even quicker.
The odds are that you’ve stumbled across the term lender’s mortgage insurance and you’re wondering what it stands for. Well, you’ve come to the right place. This article will clarify this term, so that you can understand what it is, the concept behind it and the approximate costs. Let’s get started!
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
Trustindex verifies that the original source of the review is Google. 
What you need to know before you purchase your first property and how to fast track it. We have designed this guide to get you up to date with everything you need to know about being a first home buyer. Whether you have a short term goal of purchasing your first property or are thinking about it sometime later down the track, this guide will cover important essential aspects of this exciting journey.
What the banks won’t tell you and how to save serious money on your home loan. By Investing 10 minutes of your time to read through our guide, not only will you learn the tips and tricks the banks won’t always tell you to assist you with paying off your home loan sooner, but also gain an insight into some techniques that will allow you to minimise the interest you pay to the bank.
The best way to take control of your finances is to use a budget planner. This is a simple tool that helps you understand the money going in and out of your household. With our Highline Lending Budget Planner, we’ve got you covered. This handy tool allows you to log and track your goals, track your savings, track your debt and expenses and keep a monthly record for an end of year evaluation.
