They say elephants never forget – well neither do lenders. Most people realise that your credit history affects your ability to get a home loan. However, your long past experiences and interactions with individual lenders can have an impact on home loan applications now.
How your past can impact your home loan application
Lenders keep track of what has happened with your accounts and credit cards with them for years. Their records far exceed normal credit files. This means that any past issues you’ve had with a lender, even if long ago resolved, can be a barrier to getting finance through them now.
Imagine you have a small amount outstanding on credit card that you no longer use. Perhaps you move, and the bank doesn’t send the statement to your new address. Years later, when you find out about this small outstanding debt, you immediately pay it in full. Still more years later, you apply for a home loan with bank. Imagine your shock, when the bank declines your loan, for no reason other than your now paid out debt.
As unlikely as it sounds, this does happen. When it comes to their own customers, lenders memories seem to be infinite. Small, resolved matters in the past, can have seemingly disproportionate effects on your ability to borrow in the present.
What to do if you find yourself in this situation
If you’ve found yourself in a similar situation to the one outlined above, don’t despair. At Bee Finance Savvy, we’re here to help. Sometimes, all that’s needed is a little negotiation with a lender to work things out. If that isn’t an option, we have an extensive panel of lenders. This allows us to carefully assess your situation and pair you with a lender best suited to your circumstances.
If you’d like an obligation free quote, call or text our lovely broker Desiree on 0455 131 937 or 1300 140 554. Desiree can also be reached at email@example.com . Alternatively, you can fill out the contact us form on this site.
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