hi all,
I recently was granted pre approval for a home loan, and therefore had a credit check, but I think I would now like to obtain finance elsewhere. So how long do I have to wait to apply for finance elsewhere? As I am aware having too many credit file hits looks bad. I have no credit issues, always pay bills and loans on time etc .
Thanks in advance
Ezz
Hi Ezz
Welcome to the forum and I hope you enjoy your time with us.
With Positive reporting upon us the fact that you had a loan pre-approved but then decided not to proceed with it is really not an issue.
Of course most lenders have not embrassed PR however as long as when your Broker submits the new loan submission this is explained it really shouldn't be an issue.
I would tell your Broker upfront the features you require and get him to come back with a suggestion as you really want to try and limit the applications that are lodged going forward.
Always easier to get it right first time.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I just had a client this week with credit check 13 hits over the last three years, the three majors knocked him back because they all use scoring. He had a construction loan (3 years ago), Two cars one new and a refinance, all on a household income of $280K. Homeside/NAB put their hand up in the end, so it all worked out fine.
Still it shows you the new Positive Reporting system will take a while.
Modernity Investing
Email MeIf at all.
Spent 2 days last week in the Blue Mountains with the heads of Residential Mortgages for the top 6 Banks and the general opinion they may not use or report data to aid Positive Reporting due to the cost factor.
if the top 6 lenders aren't going to bother what hope have the smaller lenders got.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hey Ezz
welcome aboard
Why are you looking to change lenders? Which lender are you preapproved with?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Well, applied with CBA pretty much out of laziness or convenience because I have all my accounts and savings with them ( I still have my original dollarmite account). I realise that their are many many lenders with much better rates, so this choice will cost me a lot of money.
I realise that their are many many lenders with much better rates, so this choice will cost me a lot of money.
You can negotiate on the advertised rate or better still get a broker to go into bat for you.
I am finding CBA are pricing competitively if asked.
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
Interesting post…
As all credit checks are tracked and logged, too many could raise eyebrows.
That said, so long as you have an explanation you should be okay.
Beware the new changes though, were more information is tracked and defaults treated more harshly. Read more here.
I would recommend getting a copy of your credit record annually and making sure it is accurate.
You can pay if you want it quickly, or else you can get it for free: instructions how here.
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
I am finding CBA are pricing competitively if asked.
Agreed.
Just had a couple of 1% discounts provided on loan amounts that don’t normally get those sort of discounts.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Interesting post…
As all credit checks are tracked and logged, too many could raise eyebrows.
That said, so long as you have an explanation you should be okay.
Beware the new changes though, were more information is tracked and defaults treated more harshly. Read more here.
I would recommend getting a copy of your credit record annually and making sure it is accurate.
You can pay if you want it quickly, or else you can get it for free: instructions how here.
– Steve
Too many credit checks can raise a lot of eyebrows indeed. I’ve had clients who were originally using mobile bankers, who would put them through perpetual pre-approvals, applying for a new pre-app after each expiry. Add in a lender switch through the process, they had 6 pre-approvals over 12 months.
Needless to say the incoming lender for the new purchase wanted to know what was going on – broker notes and letter from clients resolved this quickly however.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Too many credit checks can raise a lot of eyebrows indeed. I’ve had clients who were originally using mobile bankers, who would put them through perpetual pre-approvals, applying for a new pre-app after each expiry. Add in a lender switch through the process, they had 6 pre-approvals over 12 months.
It’s a crazy approach. If the lender has granted a preapproval previously, and providing there’s been no major changes with their financial situation, then applying for subsequent preapprovals is just silly. Even if the client is adamant they need a new one – the banker needs to explain to them the ramifications of reapplying each month or two.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
