RE: URGENT Help/Info needed!!! Please - CBA Home Loan Appli

Hi Guys,

I am having really bad night so far. I am first home buyer and we are currently exploring different banking options for our 'pre-approval' process. We have sort listed so far CBA & Bank of Melbourne.

Tonight [as I am writing this post @ 10:00pm], I have received few text & 3+ emails back to back from my Home Loan specialist from CBA, and she has delivered some uncomfortable news to me so far, as it reads out below:

Below is the code for the decision:

R370 - LMI Bureau Check
Application has been referred as some information with the credit bureau has been found which is outside of Lenders' Mortgage Insurance policy and requires further investigation by a Credit Officer.

Advise the applicant that the application has been referred due to a Bureau Check record.

We are really concerned and to be honest worried as well. I am sure it will be tough night for me to pass out. However, if you guys do have any advice/tips or even to share your experience, I would appreciate your any advice on this decision.

This CBA home loan expert has advise me to wait until tomorrow afternoon, and asked me to provide few further supporting doc., which I have already submitted. She asked me to be on standby if a real bad news [i.e., our home loan application may get rejected by CBA], she asked me to call VEDA and get my credit checks down to see any issues with my credit files.

Thanks for your any input/advise/tips to overcome this difficult times.

Regards,
Neel

Hi Neel,

This can mean a numbers of things;
1. You have an active credit file - ie you been shopping around or applying for credit recently ( credit cad, mobile etc..) - If this is the case skip the big 4 ...and jump to a tier 2 lender that doesn't credit score

2. Listed default your not aware of - Very common for teleco default to pop up, especially if you move often. If this is the case you should speak to a broker so that he/she can direct you the right bank depending how big or when your default was listed

3. Irregular principle place of residence- Generally speaking if you have more than 4-5 residential listing in the last 7 years, the bank's auto credit scoring system will pick it up and flag it. If this is the case skip the big 4 ...and jump to a tier 2 lender that doesn't credit score

4. Another not so common misc- Company dictatorship/ownership thats not listed in the bank app, long work history, discharged bankruptcy ...

It be impossible to know which one is the cause till you order and have a look at your credit report.
I have both good and bad news.

Good news - CBA uses an auto credit scoring software, and it looks like it's not an auto decline...so you still have a chance. ( with CBA anyway....sigh CBA...)

Bad news- if you are rejected, it makes your credit file even worst and i highly suggest you speak to a broker; who will match your credit file and overall file to the most suitable lender OR will advise you on how to fix your credit file if required.

Regards
Michael

Hello! That does sound stressful!

Have you ever had credit before? Ie credit card, car loan, interest free?

If you haven't then there is no info on the credit file which may require further investigation on their part. It held up my finances application on his first house as he didn't have anything prior.

Alternatively have you thought about using a mortgage broker. They will know the ins and outs of many banks and will know some are easier to get finance with than others. Ours is an Aussie one and helped with our second home mortgage which was very tricky as we kept the current house during construction and had to get a loan for the block which got paid out due to inheritance but the extended for the construction. It was very messy. So if no luck dealing direct with bank try a broker. There is no charge for it and ours is invaluable.

Good luck! Just remember. The bank wants to give you the loan, as they want your business!

Hi Enelya,

To be honest I had few credit cards [3 open so far] and a personal loan, business loan & car loan between 2006 - 2012. However, over 6 years, I have managed my financials very carefully and able to pay off all my loans except 3 remaining credit cards. Over these years, I have never missed my any single payouts to my owing and has maintained a good relationship with all my service providers.

I just hope this would be a formality from CBA team [pessimistic here!!!]. I really liked at the end how you said, ''Just remember. The bank wants to give you the loan, as they want your business!''

Thanks for your support. I will keep my fingers crossed and Keep you posted here, if i do get any news/updates from CBA team.

For sure it's getting sleepless night! [1:40am & still awake in bed ]

Thanks,
Neel

Hi Michael,

Thanks for your view and a message here as well. Just to give you idea on your previously raised 4 points, my response to them are as follow:

1. About active credit file - certainly as i mentioned to Enelya, I have few active credit history. But they are all CLEAR to my knowledge. Also so far in this week [as part of my 'house hunting'] I have applied BOM [Bank of Melbourne] for 'pre-approval' yesterday as well, apart from CBA. I haven't applied any other home loan 'pre-approval' application.

2. Certainly I am not aware of any 'defaults' against my name since 2004 [the day I have enter in AU]. Having said that we have made a join application, and i certainly have no knowledge about my wife's credit history...!

3. Irregular principle place of residence - if you referring to my renting history, i have been renting with my wife at the same place for 5 years now. I hope it's not an issue here on the reason, which my CBA has referred to?

4. About this point, none of us [me & my wife] every declared bankruptcy and we both are working for a different organisation for more than 4 years time, and has a decent work history so far in AU and at the moment our earnings are decent as well.

Do let me know what you feel based on this. Also do you suggest any other options/alternatives to consider at this very stage?

I am still hoping my CBA lender will help me [i just hope, as i believe in a faith] to work with their internal team and have this sorted after few more clarification, supporting doc., questioning, etc... I just wish this stage pass very soon and we have some true indication, as to what is going to happen with our application.

Regards,
Neel

Ok, a few bad points- hence why it's been flag by CBA.

CBA will focus heavily on
1. What the personal loan was used for?
2. How long have you had the business loan for? and is the business still in operation? ( very important)
3. Why didn't you go ahead with the BOM pre-approval? and what was the outcome.

^ you will need to have a good answer and reason for the above.

As mentioned, CBA is probably the 2nd strictest lender in terms of credit scoring ( westpac is the strictest !) with over 90 lenders out there, if CBA says no don't take that as your final answer.

Plenty of options, let not jump the gun...always good to be a bit optimistic What was the outcome with CBA?

In Veda.com.au, under personal and it will take you to the below link... Then click buy now - you can apply to see your credit file-it's free (im pretty sure) if you can wait I think 7-10 days otherwise $59 an you will be emailed your credit file within 24 hours... Very important information as it has everything there that the bank or loan institute look at but it won't be 'marked' against your name... As too many loan application for credit can also look bad against you. And you can also use this paperwork as it is official to take to bank or mortgage broker for them to give an idea of whether you will be eligible to get the loan without again marking against your credit file...
So hard to type on my iPhone

Umm say if CBA knock you back and say no - then the next place you go to goes through application-do a credit check and then see a week ago you applied for the loan with CBA - it won't say on your credit file if it had been approved or declined but they safely assume it wa declined and the alarm bells start ringing.

Best thing seriously is to get that information so you truly know where you stand in term of your credit file and go see a mortgage broker who can advise you on the best options for your situation

Good luck

http://www.mycreditfile.com.au/

We got turned down by CBA when we applied reason being to many credit searches against us. If you have more than 4 in a certain amount of time you get referred. We arrived last November and setting ourselfs up obviously required credit checks , bank acc, foxtel, mobile phone and car.

We went to a broker who got us a fantastic deal with Ing bank.

It's not all lost try a broker who doesn't count the credit searches etc.

This is not our broker but blue bay finance are also very good, we used the mortgage gallery.

What was the outcome? Did CBA approve or did you end up going elsewhere?

Hello ALl,

thanks for your all contribution and different prospective. I do apologies for a late response here, but finally i got my pre-approval done without any further issues done for $0.5m with both NAB + CBA as well.

Really happy and now we are looking for a house + land package @ Harcrest [wantrina south].

Thanks