Gone are the days where you could assume that a steady income would grant you some kind of home loan.
The current lending environment is a fickle one!
What many fail to realise is that getting approval is much like playing a game of chess – make one wrong move and check mate, you’re declined!
Entering the loan game as a beginner (having never played before) or with limited experience (having secured a loan or two previously) is risky.
Just like competitive chess, if you make the wrong move you can’t retract it.
And there are so many bad moves to make - from giving the bank too much information to not enough to the wrong sort!
It’s no longer a simple process of assessing your income to ensure you can afford to make your repayments and then bang, there’s your loan.
It’s quite different.
Apart from tightening their lending criteria, banks are now scrutinising your living expenses.
To be eligible for a loan, you’ll be asked a whole bunch of in-depth questions about your spending habits.
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- How often do you eat out?
- Do you go to the gym?
- Do you have Foxtel or digital streaming services?
And so on.
Apart from strict lending criteria and the vast amount of detail they require, each bank also has their own preferences.
These can make all the difference between an approval and a decline.
To combat this, you need a Grandmaster in your corner; someone who has played the game hundreds of times and knows the nuances involved in making the right moves to ensure your home loan is approved the first time.
An expert who intimately understands what different banks look for in a good home loan application; or when one says ‘that’s your maximum loan amount’, can find others out there that may be more flexible.
A good broker who’s been playing in the same league as the banks for over a decade will be pretty good at playing the game!
You’ll need the best pieces on the table so your game ends in the ultimate checkmate – your much-desired loan approval!