Most people realise their bank statements are an important part of their home loan application. But what they don’t realise is what lenders are looking for in their statements. Lenders aren’t just looking for regular paychecks, or a good history of saving. There are a lot of things lenders look for in your statements – and they can cause big problems.
Bank statements – what the lenders are looking for
Lenders have been increasing their scrutiny of bank statements when it comes to home loan applications. There are number of things they look for – things that you might think don’t pose a problem. But these small things can mean you’ll be declined!
A close look at your bank statement will reveal who you’ve paid, how much, and sometimes the reason for the payment. Certain payments will trigger alarm bells with some lenders, and can lead to an automatic decline.
For example, imagine you have a past unpaid bill, such as disputed bill, that has gone to a collections agency. You may now be paying the bill off in direct debit installments. This will appear on your bank statements. And lenders will notice. In this situation, you don’t even have to have a default on your credit history for the bill – the mere fact that you are paying off an overdue bill will be enough for some lenders to decline you.
And this is just one example of the problems lenders may have with your bank statements!
Are your bank statements problem free?
This isn’t always a simple question to answer. The list of things that lenders may take issue with, is growing. At Bee Finance Savvy, we stay constantly up to date with changing lender policies, so that we can identify any potential issues with an application.
Prior to lodging applications, we undertake meticulous reviews of our clients’ bank statements, to identify any transactions that may be problematic. When we do find a potential issue, there are usually a number of solutions.
It may simple be a matter of helping the client to work towards a clean bank statement history.
Other time, we may be able to match them with a lender who won’t take issue with their bank statements. Whatever
the case, it’s invaluable to have a professional broker on your side. A savvy broker can identify problems before they result in a declined home loan application, and a mark on your credit file.
For an obligation free consultation, including assessment of your financials, why not get in touch with our Sydney based broker, Desiree. Desiree works with clients all over Australia, helping them reach their property goals, through assisting them to get the right home loan finance.
If you’d like to hear from just some of our satisfied customers, take a look at our reviews on WOMO https://www.wordofmouth.com.au/reviews/bee-finance-savvy-miranda
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