Becoming attractive to lenders

What is BDM Jess. Yes I have been fully open with the broker and have been assured it will be no issue. I am not keen on the lost time as I am currently in a position to buy a regular investment property or maybe even two if I good with purchasing and do well with the deposit LTV etc. I did not realise you could run it past the lender before hand to see if it is an acceptable deal. Thank you for that.

 

A BDM is basically a brokers port of call to run past anything out of the ordinary.

A normal resi security cannot have any kind of income producing aspect other than normal rental income. A kennel will definitely not be classed as normal resi, b/c it produces income. Chat to your broker.

 

Moisturise!

 

Thanks Jess. I will have another chat and see if I can make that happen. I suspect you are correct but will be very happy to find out you are not. I appreciate you taking the time to highlight theses points.

 

Hi John. I have just been asked/told by my potential future lender to reduce my credit cards, and was also told I could do it temporarily, to get the loan through. When I called the CC companies, however, they said I would need to reapply for an limit increase, presumably generating a credit check in the process, with the possibility of refusal. Also, there'd be no offers of limit increases for 6 months (potentially handy, as these don't generate credit checks...I think...).
Consequently, I've gone as low as I am willing, and am now irritated that having $12k limits instead of the requested $2k is costing me $80K less in my borrowing capacity.
Needless to say, I've since found out that other lenders are not so draconian in their requirements, but the deed is done. Lesson learned.
Has anyone had similar issues?

 

Lots of Perfume...

 

With regards to credit cards, would my credit rating or loan amount be reduced if I have a supplementary credit card? The main cardholder is my spouse. The property and loan is only going to be in my name though.

 

Hey @Paterson00,
Some best practices when making yourself "attractive to lenders" during application. I compiled it from @Rolf Latham and @tobe but can't remember which post I got it from..

· Don't be a young single male
· Don't work in an industry in downturn
· Don't have more consumer credit than assets
· Do complete the full application, including landline numbers even though it's 2015 and no one has a landline anymore.
· Do stay at the same job and address for at least the past two years.
· Do try and have as low an LVR as possible.
· Don't have more than a reasonable number of credit enquiries in the past year. For a fhb this might mean less than 3 for an investor with multiple properties this might be 5.
· Dont have more than 50% of your card(s) limit used
· If asked, quote nearest relative not living with you, even if its the Labrador next door
· Populate all fields for existing loans and assets
· Populate all assets, even if they are small $100 accounts
· Dont forget super
· Get a small savings acct with that lender, so that you are an existing client
· Killing cards before an application helps with servicing, but if those cards are less than 12 to 18 mths old, may cause an issue with matching CRAA enquirie to declared liabiltie - think hard about retaining the cards with a 1000 limit
· Make sure your account conduct with that lender is ok, we had a declined loan for 17 cents overdrawn savings acct .....................
· Banks have longer memories than Veda................

Hope this helps.


Cheers,

Taku

 

Fantastic tips thank you for that. 17 cents huh? That would have hurt

 

This. I suspect banks also keep copies of credit files when they do a check which means look bad forever.