A little short of obtaining finance (help)

Hi All,

We have found a house we have mad offer on.
Was advertised $400,000 and we offered $320,000 and they are seriously considering it apparently.
Went to two banks and was confident of finance but got declined.

Problem is they cant accept my 2nd job as i have only been there 2 months.
NAB needs you to be there 6 months and CBA 3 months.

We are not far off getting pre-approved but i really need 2nd job counted as its 20k per year.

Any advice?

 

If the second job is casual, you'll be doing it tough to get finance. You may be able to through Liberty on their custom product but it'll be expensive. Can you negotiate a longer settlement and reapply with CBA in a month?

 

Both parties wanted a quick settlement so not really.
I am going to provide a ltter form my employer stating i am not part time with guaranteed hours of 12+.
Hopefully it helps.

 

Keep approaching lenders yourself or see a broker.

 

Yes - get a finance pre-approval BEFORE you go out looking and making offers.

 

Keep clocking up those credit enquiries......
Go and see a broker please..

 

We did get pre-approval weeks ago but that was with lender not asking how long id been at 2nd job.

We are close at Commbank and Bendigo Bank but not NAB (they are out).

 

How could that happen?

 

It may have been a cursory assessment rather than a full pre-approval. Some banks will actually deliver a "pre-approval" letter without assessing the deal, then upon closer inspection it turns out it's not actually a deal...always get a broker to ensure it's a full assessment.

CBA are probably the most flexible of the majors with this sort of thing. Get a broker to do the leg work for you, that's what we're here for.

 

Thanks Tom, meeting with CBA and Wespac at lunch.

 

In before the OP destroys their credit file and can't get a loan anywhere. (including the lenders which would have given them a loan straight away, but won't after they see this many applications in a short period of time lodged on their file)

Speck - every time you go to a branch/bank to apply for a loan/have a 'discussion'/get a pre-approval a hit is registered on your file. Each time this happens you reduce your credit score. Going blindly like this is going to potentially make you pariah in the lending market and no one will lend to you, when you could have just gone to a broker who could have got the right info from day 1 and known which lender to use. Careful before you burn down what available bridges are left by scrambling desperately like this.

 

Ok- i actually didnt know this.
I thought i would just shopr around with 3 or 4 and get approved by one of them.

 

There's a reason why brokers exist. Don't do yourself a disservice - a few have spoken to you on here already - touch base with ONE of them and they'll be able to review your options vs the policies of dozens of lenders simultaneously, instead of you running around and only damaging your file.

 

If you're not casual you will definitely have options - surprised CBA won't do this?

 

Just don't let them lodge anything - don't give personal details and keep it high level or you'll trash your credit file.

 

My fiancee and I had a similar scenario when buying last year, she had only been at a new job for 2 months. Our proactive mortgage broker told us to organise a letter from her new employer stating she was 'doing well and is a valued member of the team' blah blah and that got us over the line

 

@Speck1 You have been given some great advice above. Do yourself a favor and get in touch with one of the brokers who have posted. You will most certainly get this loan over the line quicker and easier & with less damage to your credit file which seemingly has already copped a beating.

 

I'm no broker (somebody correct me if I'm wrong about this) - but there is only really 3 mortgage insurers in Australia and they dictate the lending requirements - so if you go to 5 different institutions that are all insured by the same company then your outcome will not really differ, so you are better to save your time and approach it more efficiently? I'm not sure about 2 of the company names but I've been told the 3rd is ANZ as they mortgage insure themselves. So maybe approach ANZ bank directly and see if they do anything different to the others? I have literally obtained a pre approval from ANZ within a day, due to a bit of a plea and being nice to the branch manager - application was simple, but it's hard enough to get a car loan approval in a day. I would say if you go to ANZ and maybe 2 other institutions and you are hearing the same problems or choke points in the application, this is a good enough cross section of lenders to determine that you'll have to work another angle - either conditional offer, cooling off extension, settlement etc.

 

Many of the bigger lenders have the ability to approve LMI in house which means you’re not quite correct. .
All in all what you’ve suggested probably does more harm than good in most instances - ANZ is far from optimal for many borrowers.