Where do I go if my Home Loan is Declined after Pre-Approval?
Fortunately, there are non conforming lenders and credit providers who offer home loans to people who have been declined by mainstream lenders.
Non conforming borrowers are also people who may have been previously rejected for a home loan for a number of reasons such as bad credit history, bankruptcy or unusual incomes (more information on non conforming areas below).
Banks are normally quite reluctant to approve mortgages for those that fit into the non conforming loan borrower and people often find that their first ‘pre-approval’ loan application is approved by the banks. When they then go for formal approval they find that their home loan is declined after pre-approval.
There are quite a few categories that non conforming borrowers falls into. If you think you might fit into one of the categories below you may fall into the category of being a non conforming borrower:
o Irregular income (including self-employed, casual, on probation and contract workers).
o Past credit defaults or poor credit history
o Consolidation of numerous debts
o Discharged bankruptcy
o Gifted deposits
o Non Genuine Savings
o Advantages Purchase
There are a number of different loans available for non conforming borrowers such as low doc self employed loan, low doc PAYG loan, line of credit loan (or home equity loan), bad credit home loan, clean credit non-conforming loan and short-term self-employed loan.
Don’t worry, you could still get a home loan if you have been declined, there are other options other than the banks such as skilled and experienced mortgage brokers who specialise in non conforming loans.
Home loan declined after pre-approval?
Such loans are only available if you can meet the following criteria:
1. You should not be in bankrupt or taking advantage of a part 9 creditor agreement within the Bankruptcy Act. (You can however apply for a such loan the day you receive your discharge from such restrictions).
2. You need to put together a minimum deposit of 5 per cent plus costs if you wish top purchase (or have 10 per cent equity in the property that you want to refinance).
4. You will be required to find money to pay any stamp duty and other costs that outside the loan allocation funds.
5. You should have sufficient ongoing income to service the loan repayments. (Usually people on pensions or those who are unemployed cannot obtain a non-conforming home finance).
Non Conforming Loans team of professionally qualified and expert finance brokers will customize a Non-Conforming Home Loan for you if you have had your home loan declined after pre-approval.