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.
Getting a home loan is itself a difficult thing to do, depending on certain circumstances. However, getting a home loan with a bad credit rating is probably the most difficult thing you’ll have to get through when trying to settle yourself in a new house.
Many home buyers usually assume that they have a formal home loan approval when, in fact, they haven’t been granted any. The risk that presents itself here is that you can make an unconditional offer in order to buy a property and then later discover that you haven’t been approved a home loan.
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!
As we all know, saving money for a deposit can be quite difficult, especially when we are in a tough spot. Moreover, if you want to use that deposit in order to get a home loan and fulfill your dream, things are probably going to get more stressful for you in no time.
When moving house, you can’t start preparing one week before the big move and expect everything to go well and smooth. You have to start preparing with at least six to eight weeks before you actually move out.
When you’re applying for a home loan, your lender might want to know how you plan to exit it. After all, it is a lender’s job to make you understand that you do have to plan your loan repayments and so on.
In this respect, you will need to come up with a proper mortgage exit strategy. You have to make sure that the financial path that you choose will be able to make you exit your mortgage on time and avoid missing any payments.
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.
