Finance declined. What now?

I don't have the stats, but I'd guess somewhere between 60% - 80% of loans submitted to the NAB are manually assessed. It's great when they go straight to conditionally approved because the process tends to be faster, but there's absolutely no reason to be concerned at this point.

 

Another important factor to consider, if you are rejected (for whatever reason), wait for at least 6 x weeks, before you resubmit the app to another funder.

 

I'm not sure this is good advice for Australia. Obviously if you are keen on a particular property the vendor won't give you six weeks grace.

 

I agree, but credit agencies are a breed of there own. The NAB or the broker should of told him this.

 

Credit reporting in oz is different to America. It's a factor for some lenders, but only in specific circumstances. For quite a few lenders the number of enquires is irrelevant.

 

Whats America got to do with it.????

 

Whilst this is a great idea from the perspective of protecting your credit report, I don't know that 6 weeks would make a significant difference in most cases.

If finance is declined but salvageable with another lender, obviously you don't have the luxury of 6 weeks to wait. We usually send the application immediately to another lender, but as part of that application we acknowledge and address the problem with the first lender. The outcome is usually positive if you're upfront about it and address concerns in a advance.

Credit scoring tends to get nasty with 3-4 credit inquiries in a 6-12 months period. 6 weeks isn't enough time to clear a credit report.

 

Your not based in the states? Your posts seem to point that way, you misunderstand what a broker is etc etc

 

Like I said, I don't make the rules, that time frame was explained to me by a Commbank rep.

 

Im based in Sydney. I was a finance broker before the term became fashionable.

 

Thank you all for your knowledgeable contributions here. Still have not heard back from the broker. Fingers crossed it will go through ok.

 

Hope you are right. Thank you kindly for the reassurance.

 

The number of overall credit file enquiries and number in the last 6 months is just one of the factors that influence your credit score and each lenders model is different.

I've had plenty of loans approved with cba with clients who have had 10+ enquiries in the last 6 months but it's a danger sign if other factors are weak in their model ie high LVR, short term employment, new customer etc etc.

I wouldn't worry about waiting 6 weeks if you get stuck. More important to try and find out why you were declined and send your next application to the right lender.

 

They came back to my broker asking to modify the progress payments schedule. I suppose I can modify it slightly, however not to the extent they want. My broker is going to negotiate with them RE progress payments. Have any of you people came across such a scenario and what degree of success you had?

 

I'm dealing with one at the moment - builder had to dramatically change the progress payments. No hassle though, they did it and we're just waiting for formal approval now.

 

I've seen this only once, the schedule was skewed so one of the payments was quite large and others were smaller than they normally would be. The builder didn't have an issue with changing it.

 

Yes, but I cannot ask the builder to modify the progress payments to the extent they want. He is not a large builder, hence I am not sure how open to this idea he would be. Have you ever had any success with negotiations on progress payments as follows:
- deposit 5%
-slab 20%
-frame 20%
- enclosed- 15%
- fixing - 30%
- practical completion - 10%

Is that too much to ask?
-

 

From memory NAB want a maximum of 67% at lock-up stage so I that should be okay from their perspective.
From the builders perspective, you won't know if it's too much to ask until you ask

 

Thank you Jess.