FINANCE: How to avoid getting declined on your next loan
FRASER Coast residents who want a stamp of approval on their next loan need to cross their I's and dot their T's before making application.
That's the message from Mortgage Choice owners Peta and John Short who have owned the business for close to 20 years.
With offices in both Hervey Bay and Maryborough, the experienced team of lenders help source the right kind of loan and the best interest rates for their clients from about 25 different lenders - a service you won't find from the "big banks".
The team have helped thousands of customers, both in Australia and abroad, achieve their financial goals like buying their first house, refinancing, consolidating debts, relocating, building their investment property portfolio, or getting approved for a personal loan or car finance.
Best of all, as Mortgage Choice brokers, they do not charge you for their services. They are paid by the lenders, not you.
They receive exactly the same payment, whichever lender you choose, so there's no financial incentive whatsoever for them to recommend one lender over another.
There is also financial planner on site, which is beneficial for clients who are working towards going for a loan but require some extra assistance and advice before signing on the dotted line.
Peta said lending criteria was becoming increasingly more difficult over time, with many people falling into the trap of going it alone, being declined and having to wait long periods of time before being able to apply again.
"It all depended on the person's circumstances - they may not qualify with the major lender or the lender they have always dealt with," Peta said.
"So many people say 'I've dealt with this bank for the last 20 years and paid all these loans and never faulted'... but that doesn't mean they will get the next loan. It doesn't work that way any more.
"With the way lending criteria is changing, almost weekly, it's hard for anyone to go and do it on their own.
"Not everyone is ready to be in a position to borrow at the moment so it could be that we have to wait for another six weeks or a month to get something fixed up or in place."
Peta said banks were also becoming ruthless when it comes to living expenses and what they find on the applicants bank statements.
Just one or two direct debits bouncing back from your account is enough to see your application declined, and that's where the team at Mortgage Choice can help.
A broker can go through the statements and offer advice on how to ensure good conduct before proceeding with the application.
"They are going through everybody's bank accounts with a fine tooth comb to see what their living expenses are so we are recommending to people that they need to change a few things to clean up the account to make sure they are in a condition that the banks will lend to them.
"We've just got to look at the statements and see that those things are no longer showing."
Needless to say Peta, John and the team are always training in order to keep up-to-date with current policies.
Their dedication to the business is clear with numerous Mortgage Choice High Flyer awards gracing their office walls. Since the business opened they have been named 10 times in the top 15 Mortgage Choice brokers around Australia.
"We've got to do continuous training all the time. We have to accumulate points and we have to do 30 hours of professional development training every year.
"A lot of the policy's and lending requirements are changing so we have to work a lot with our BDM's to seek advice and assistance."
Clients who work full-time or don't have the time to make an appointment during the week can also take advantage of Mortgage Choice's after hours or weekend appointment service.
To find out more visit the website at mortgagechoice.com.au/peta.short or phone 4124 7822.