Let’s face your worst fear when trying to buy a home, “what if I don’t get the money?”.
As a broker this is front and centre of my mind and don’t think that we are not also devastated when the bank says “sorry, not right now”. But I’d like you to know that NO is usually not NEVER, and usually there is a way forward. I know there is because I receive calls from many clients who tell me from the outset that I am their 3rd and final broker”. By the time they find me they have been through the wringer once or twice and they are feeling not only a little desperate but a whole lot let down. It’s heartbreaking to hear.
Then again, I see it as a niche, so they’ve landed in the right place if they’ve called. So, what sort of things can you take from a NO?
1. No can mean “it doesn’t suit our appetite at this time”. Lenders have policies which set them a lane to run in and they will only take on scenarios that keep them in that lane, so if you fall even a tiny bit outside, you may be declined. It may be simply that the lender can’t secure against property in a smaller town, such is the case in Morawa, Carnamah and even Cape Burney & Drummonds. Saying that, I do loans for people in those places regularly, so we just go to those lenders who are OK with those towns. Appetite can also be that the lender is not on the First Home Buyers Scheme list, or that they don’t include your overtime when calculating your income, but other lenders will, so we direct you to those guys.
2. No can also mean that you haven’t saved enough money, and again, we can help you put together a savings plan, or help you refinance some personal debt that’s dragging you down, or talk to your parents about them guaranteeing your loan.
3. No can mean “not that house, at that price”. The lenders pay qualified & independent Property Valuers to tell them if the price you are wanting to pay is reasonable for that home. Sometimes that valuation is lower than everyone expected, and the bank either says No or “Yes but you need to put up a bigger deposit”.
4. No can mean that something else in your financial position is pushing them outside that lane, so it’s up to your trusted broker to know this beforehand and only recommend lenders for which these things won’t be a problem. A good broker will know these lender policies and therefore will have less declined applications on their desk.
There are other things that can go wrong but the above are some of the things that surprise people most. My point is, most people that come to me are able to borrow money. It may not be from the bank they see on a shiny online ad that promises the world, as sometimes it’s a smaller lender who takes on the scenarios that are outside of normal lender’s running lanes. They will charge more for the loan but you can get into the market and move on with your life. I don’t drop you then like a hot potato; I will check in with you and will watch your loan over coming months to make sure we’re not missing a better opportunity for you.
Don’t assume a No today is an absolute “no way you’re getting a house”, because in my experience, that just is not the case. Where there’s a will there’s usually a way.
