Mon, 2009-01-19 17:29 — Guest
Preparing a loan application that will have the greatest chance of reaching lender approval requires careful preparation before approaching any lender.
By far the easiest way for most people to apply for a loan is to engage the services of a finance broker.
In almost all cases a finance broker will cost no more than approaching a lender yourself and in many instances a finance broker will save you a lot of time and possibly cost by comparing a range of lenders and options to find the loan that suits you.
Banks and lenders have different lending policies. Some will lend to 100 percent while others avoid lending above 80 percent or even 60 percent of the property value in some cases.
Some lenders do not allow certain types on income such as maintenance payments or reduce overtime income or rental income below the real amount of the income. Other lenders avoid certain locations or property types.
Using a finance broker can help to avoid the lenders who are not suitable for your needs, and save time plus an additional enquiry on your credit file from the lender who accepted and then declined the loan application.
A finance broker will carefully assess your individual situation and work out an option, or range of lender options, for you to consider. Finance brokers usually have a database of home loans which will dramatically reduce the time it takes to compare potential options and identify the most economical option available that will suit you.
Once a loan option is chosen the finance broker will advise what supporting documents the lender requires, most lenders have variations, and prepare a loan application that will meet or exceed that lenders credit approval department’s expectations.
The finance broker will continue to liaise with the lender on your behalf, saving you more time through not having to phone the bank or go into a branch to check how the application is progressing.
Many finance broker companies such have additional services they offer customers at no charge such as free property reports and sales data and ongoing loan effectiveness and competitiveness monitoring.
If you are looking to apply for a loan that is competitive and has a greater chance of being approved, without the process costing you any extra money and in less time than applying for the loan yourself a finance broker will be the answer.