Browse Forums Home Finance Re: Loan application rejected! :-( Please advise 21May 28, 2009 2:13 pm Well I was planning to hide the debt in another country I guess not everyone can do that though.. kork, but they are not taking on debt to build a deposit, they are just paying less than they would have on the car loan. So in comparison to their previous plan they are taking on more debt, but in comparison to their existing debt commitments they are not taking on anything more. Moodyfish, they asked me for letters from both my and my wife's employers too. I'm sure those will help. Metricon Riva 33 - http://herlihy-riva.blogspot.com Site start 15/03/2010 - Handover 23/12/2010 9 months and 8 days (284 calendar days) from site start to handover Re: Loan application rejected! :-( Please advise 22May 29, 2009 11:09 am We went to Def credit who are overall satisfied with our current financial status but said that it would be useless to apply during my probation. The letter thing from my employer won't work with the mortgage insurer. Going to mortgage choice today. Re: Loan application rejected! :-( Please advise 23May 29, 2009 2:16 pm Unfortunately most banks wont want to touch you within your probation period. How they see it is your employer is able to let you go without warning putting your ability to repay your mortgage at risk. And even though your manager may say your job is secure, something may change. How ever if you have been in your industry for long enough then banks may take this into consideration when evaluating your loan. As to your savings, a way around the genuine savings is to have 15% of the house and land cost and apply to a bank for a 85% loan with no genuine savings. You have 10% of your land paid off which means you would need the additional 5% of land cost and 15% of construction costs. You could also take the 15,000 interest free loan through your husbands employer, than top-up your loan (to 90% - 95%) once your construction is complete to repay that 15,000. As you already would have the loan with the bank, the banks will give you the larger loan. Edit: 85% Savings still requires Lenders Mortgage Insurance (LMI) ---------------------------------------- Building the PD Lisbon 24 http://www.porterdavis.com.au/#homeviewer/lisbon/24 Blog of our progress. http://lisbon24.blogspot.com/ Homeone build thread https://forum.homeone.com.au/viewtopic.php?f=31&t=28665 Re: Loan application rejected! :-( Please advise 24May 29, 2009 2:23 pm No mortgage insurance company will touch you whilst you are in a probation period. The govt crackdown on irresponsible lending has meant that mortgage insurance companies are going to be scrutinised to an inch of their lives. So take the opportunity to start saving your butts off - don't worry about paying your personal loans down if your income capacity is okay - just get as much savings into the bank and use the balance of your probation period to make sure that everything is exactly as the Bank / CU wants it. It may take longer to do everything but at least you will be on the right track. Some things are worth waiting for. Re: Loan application rejected! :-( Please advise 25May 29, 2009 2:31 pm kyton No mortgage insurance company will touch you whilst you are in a probation period. The govt crackdown on irresponsible lending has meant that mortgage insurance companies are going to be scrutinised to an inch of their lives. So take the opportunity to start saving your butts off - don't worry about paying your personal loans down if your income capacity is okay - just get as much savings into the bank and use the balance of your probation period to make sure that everything is exactly as the Bank / CU wants it. It may take longer to do everything but at least you will be on the right track. Or raise 20% of total house and land and skip lenders mortgage insurance all together. ---------------------------------------- Building the PD Lisbon 24 http://www.porterdavis.com.au/#homeviewer/lisbon/24 Blog of our progress. http://lisbon24.blogspot.com/ Homeone build thread https://forum.homeone.com.au/viewtopic.php?f=31&t=28665 Re: Loan application rejected! :-( Please advise 27Jun 01, 2009 1:36 pm Met with a broker from Mortgage Choice,who thinks that CBA will be ok with the whole probation thing. We'll meet him tomorrow and file the appln for CBA. Wish me luck guys...really need to get this going. Re: Loan application rejected! :-( Please advise 28Jun 01, 2009 1:50 pm Good luck... I hope it all works out! And wish me luck too, we are trying to negotiate an offer on our house which is for sale Blog: http://bluemistkids.blogspot.com "Never be afraid to try something new. Remember, amateurs built the ark, and professionals built the Titanic." Re: Loan application rejected! :-( Please advise 29Jun 01, 2009 1:53 pm Hi! We borrowed last year with a minimal deposit and Dh's parents as guarantors. Basically they just had to sign that they were guaranteeing 20% of our loan amount, and we bypassed mortgage insurance . If you have anyone in your family that is happy to do that for you, saves a lot of headaches. Obviously a lot of trust involved. Love KRisti ETA: it was ANZ.. and was a land/construction loan too. Living the dream. 4 horsey acres in the country. What's the next project??? Re: Loan application rejected! :-( Please advise 30Jun 01, 2009 11:41 pm All the best Hels...sending some bloody-good-offer-on-your-house dust your way! Thanx Kristi,unfortunately that isn't an option for me. it could have made things so much simpler! home loan increase advice 31Jun 02, 2009 4:12 pm TimmyDunlop You could also take the 15,000 interest free loan through your husbands employer, than top-up your loan (to 90% - 95%) once your construction is complete to repay that 15,000. As you already would have the loan with the bank, the banks will give you the larger loan. There is a problem with this suggestion. Lenders will not increase your loan to 95% of the home value (top-up) these days, especially for debt consolidation. Buying first home with family guarantee 32Jun 02, 2009 4:15 pm Kristi Hi! We borrowed last year with a minimal deposit and Dh's parents as guarantors. Basically they just had to sign that they were guaranteeing 20% of our loan amount, and we bypassed mortgage insurance . If you have anyone in your family that is happy to do that for you, saves a lot of headaches. Obviously a lot of trust involved. Love KRisti ETA: it was ANZ.. and was a land/construction loan too. Also ANZ will want to know the income of your security guarantors to see if they can actually support the guarantee in the worst case scenario. Other lenders don't have this requirement for a security guarantee. Re: Loan application rejected! :-( Please advise 33Jun 15, 2009 2:54 pm Heard from our broker,CBA has approved it in principle but will confirm in a week's time after the evaluation. In the meanwhile, we're getting $20000 from my parents which we want to use to pay off the car loan... Crossing our fingers! Re: Loan application rejected! :-( Please advise 36Jun 15, 2009 3:59 pm Hi Moodyfish, We just put in an application for our construction loan through CBA today too! We got a 95% loan on the land in February, and we've scrounged together all the money we can to go for 92% on the land and construction loan instead of 95%, so we'll save a bit of money on LMI (if we're approved). Great that your mum and dad gave you $20K, that's a massive help (and it sounds like you've got great parents). . . might be worth doing some calculations to see if you're better off paying the money towards the deposit rather than off the car (see how much you'll save on LMI, though you'd have to pit it against how much extra you'll pay on the car loan in interest payments). Though you'll also have to see if you can afford to pay the mortgage and car loan repayments at the same time. I'm totally anal and work everything out in excel spreadsheets to see what's the most cost-effective way of doing everything. . . but sometimes it's worth paying a bit more just to BUILD THE HOUSE!!!!! This building lark is getting to me I think. . . Re: Loan application rejected! :-( Please advise 37Jun 15, 2009 4:54 pm I think they've approved 90%..but we've already paid 10% of the land so dont need it. We cant make up our minds whether we should pay off the car loan or keep it. the car loan is at around 12% and the monthly installment has a huge interest part in it! we'd like to get rid of it.... Yeah, my parents are great! Re: Loan application rejected! :-( Please advise 38Jun 15, 2009 5:14 pm Yeah, 12% is a lot higher than the 5% on a standard home loan. . . and the really important thing is, if you do decide to pay the money towards the loan instead of paying off the car, you have to be committed to paying off the car-loan as quickly as you can after you've built the house! Remember the progressive drawdowns. . . while the house is being built, you only pay interest on the stages that are complete (and have been paid for by the bank) (if you're getting the same loan as us). . . good time to plonk some extra money on the land mortgage or pay off some credit card debts! Stay calm! 39Jun 16, 2009 10:02 pm I understand that you guys must be disappointed..i would like to say that if your application is rejected then you have to resubmit but with proper care..and specially before chooisng loan application must read about the bank policies! Re: Loan application rejected! :-( Please advise 40Jun 16, 2009 11:08 pm Hey Jodge....we're thinking of combining the 20k from my folks and the tax return we'll get in july and if we need to then also the westpac shares we've got,and paying off the car loan... we'll start with a clean slate and concentrate on paying off the home loan... Hey Chris...it was rejected by Westpac but CBA seems to be happy to go ahead with it so far... The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 19097 Thanks for the response! However, it's have been sorted. But for others benefit here is what we had to do. Unfortunately, it's not straightforward. BCC washed their hands… 3 7205 If your patio is going to be 35 sqm then that's going to need Council Approval. The fact that they previously approved your 25sqm patio will be irelevant 1 5507 |