If you’ve recently had your home mortgage application rejected, then you may feel like you’re stuck between a rock and a hard place. Even with the competition in the financial sector, not all lenders are willing to extend their services – especially if a new customer is deemed to be unable to repay what they borrow.
Here’s a little home loan advice to help you to bounce back from a rejection and get the ball rolling again.
Don’t give up
Depending on the reason for your rejection, you might be in a position to re-apply to your chosen lender once you get your finances in order. Most banks will reject an application if they feel that the candidate’s income won’t cover the costs of the mortgage, or if their finances aren’t clear. The easiest way to rectify this event is to take the necessary measures to get your financial records back on track.
Consider other options
Banks, building societies, lenders and even brokers are readily available throughout Australia and the chances are that you will find one that will be happy to take on your custom. If you’re keen to avoid going back to the lender that rejected you previously, consider your options. With so many to apply to, there’s no reason to burden yourself by revisiting your previous rejection. Instead, get your finances in order and approach other institutes.
Take a step back
If you weren’t in the position to organise your finances during your original application, then the chances are that you won’t suddenly be able to do so. A good plan would to be to start organising things from a particular date. For example, you could place your income in to an account on the 5th of every month and then keep track of your outgoings until the next month comes around. After 4-6 months, you’ll be in a position to display your finances in a way that will demonstrate that you are able to cover the costs of your loan.