7 Reasons Your Home Loan Application Got Declined

I‘m always on the lookout for articles with potential. What’s your take on the following points I came across recently?

Your credit history is bad

If you've had a number of late payments, defaults or judgements, you could face a tough time with many lenders. If you've been bankrupt, home loan approval can be even more challenging.

Lenders will judge the likelihood that you'll keep on top of your home loan repayments by examining the way you've managed debt in the past. If you've built up a history of struggling with debt obligations, it can seriously hurt your application's chances of success.

You've applied too many times

Every time you apply for credit, the application is listed on your credit file. Too many applications can be a red flag for lenders. They show that you have too big an appetite for credit and that you may have already been knocked back by a number of credit providers.

You have too much existing debt

Another key factor in home loan serviceability is your amount of existing debt. Lenders will look at your current debt obligations and determine whether or not you'll be able to manage home loan repayments on top of your existing commitments.

When lenders assess your debt, they'll take into account any personal loans, car loans and credit cards, as well as the HELP debt. It's important to note that lenders will assess your credit card debt based on the combined limit of all your credit cards rather than the cards' actual balance.

What do you think? Maybe you’d like to read on? Check out the full version here then give me a call on (07) 3465 9259. Alternatively, email me at [email protected].

Thanks,

Craig