Will I Be Approved?

Hi all, so I have recently applied for finance for a home loan, and I am just so worried about not being approved, that I have been losing a lot of sleep. I have fairly good financial history, and I have a good deposit however there are a few factors I am worried about. Here’s a little info on my financial situation, and then I’ll follow up with things I am concerned about:

- House price is $425k
- My Deposit is $65,000 (12% deposit), will be borrowing about $373,000
- I earn around $128,000pa, about $96,000 before overtime
- I have one car loan that owes $35,000 and have not missed a payment, and am ahead by a few thousand $
- I have been at my current job for close to 5yrs
- I haven’t had any credit cards in the last 5 years
- My Experian credit score is 724

Things I am concerned about:

- I have a young child and I am married, my wife doesn’t have full citizenship so I am going it alone for the finance and they are classed as two dependents
- We had about $21,000 in genuine savings, then we had a family member pass recently and we inherited about $65,000
- I used $15,000 of the inheritance to pay a personal loan off which I had never missed a payment on
- we inherited the money within the past month or so, will this matter?
- Our bank statements are very messy, a lot of small transactions etc... however there is always at least $200 left over every pay week before I get paid again, plus I save $250 a week, plus we currently rent
- I recently transferred my mother a couple thousand $ from the deposit account, will that matter?

Additionally, I know we could’ve gone for a larger deposit but I don’t want to go into our first home with no money in the bank to buy furniture, white goods etc...

Is there anything on there outstanding that you think would get me denied?

looking forward to any feedback.
Thanks

 

To be honest this should be discussed in your meeting with a mortgage broker before any application was made.

 

If you've gone direct to branch, I can understand your thoughts.

If you went through a good broker, the application would not have been submitted if it wasn't going to get approved.

Is your contract unconditional? If it isn't, there's no reason to lose sleep - worst case is you either lose the house (another will come!) or have to reapply with a different lender.

Have a chat with the person you're dealing with - either the bank or broker - and they should be able to put your mind at ease.

 

Thanks for your reply. I did go through a broker however I have never applied for finance on this scale, just a little stressed and don’t want to be disappointed! I have known the broker for a very long time however they were a little nonchalant throughout the process, so was hard to gauge their confidence on my application.

The contract is subject to finance.

Thanks.

 

Given the circumstances described, there's plenty of lenders that would be fine and a few others that would be a problem. If your broker knows what they're doing, you're going to be fine.

These really are questions you should be asking your broker and they should be discussing with you in detail to give you some comfort.

 

did you ask? Completely reasonable to ask specifically how confident are you that my loan will be approved as is and what issues do you anticipate?

 

this suggests you just went to a friend who is a broker, that you have never used them before to get a property loan?

 

How long has the application been with the lender?

 

Might not stop you from getting a loan, but I see the fact that you had bad debts of over $50k as somewhat problematic!
It could just be a personal preference, but I feel much better about a debt of a couple of million on investment properties, than I do about $1000 on a credit card.

 

I never stated I had any bad debts over $50k? Nor did I state that had any money on a credit card....

As for the other replies - I have previously bought a property with this broker and was very happy with their work. Was a fair few years ago however But I remember the process being somewhat painless.

And the application has been with the bank about 5 business days.

 

Around here any loan that's not a home loan or for investment purposes is classified as bad debt. Don't worry about it, if it was a problem your broker would have spotted this a mile away.

A few years ago, the process was a lot, LOT, easier. Remember the Royal Commission into Banking? What you're experiencing is a consequence of that and to regulation that led up to it. Borrowing money is incredibly regulated now and a very difficult process. You're probably going to have to wait at least another 5 days, but your broker should be able to let you know what to expect.

 

Ah I see, that makes sense then. Thanks for the information Peter. I guess I’ll wait and see by the end of the week and hopefully have some sort of an answer.
Cheers

 

The 35k car loan and 15k personal loan are considered poison around here.

 

What is the absolute worse case scenario? You don't get approved and don't buy the property?Hardly worth losing sleep over IMO - trust your broker knows what they're doing as no one on here can answer your question with any level of certainty.

 

See your below comments. You don't CURRENTLY have $50k in bad debts, but you did at one point. Hence Spludgey's comment of 'had'.

I wouldn't be losing too much sleep at this point. See how it all goes, you might be just fine.

 

Why is your credit score 724? Did they give you a breakdown? Ask them the question and if the personal loan is worthy 150 and car loan is 126 then you’ll know why.

 

724 is not a bad score, not enough to cause an issue for this application that's for sure