We have purchased over 10 properties in the last 12 months (and applied for and had approved, over 10 loans). We have used different lenders and are now finding that when we apply for a loan, the lender is obsessed with the number of enquiries on the CRA more so than positive and negative aspects of the investments, the risk assessment and the fact that there are no defaults. We are concerned that this will come in the way of our investing future – has anyone else experienced this type of problem?
Hi,
Interesting post.
Does the lender know you have purchased all these properties? If so then I’d provide them a summary of each loan and how it relates back to the enquiry.
Sometimes it pays to make the first move – it’s called attacking the fatal flaw well before it even becomes a problem.
If they don’t know about the other properties and you want to keep it a secret then you may be in a little bit of a bother. Perhaps think about setting up another entity and going guarantor rather than chief borrower. Having said that, your previous history will still show up…
I think openly working with the lender is your best bet.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Dear Kttm,
Steve’s summary is perfect! I would also go to your bank(s) with an investing (business) plan with what your short and long term strategy is. Whoever can come to the party can refinance your exisiting portfolio (without cross-tieing your loans) and pick up new business for themselves as a reward. Of course do your own due diligiance on the exit and entry costs of the facility.
Failing this try a mortgage broker I would always suggest you find someone at “your level”.
Good Investing
Tony BartonGood advice, and I always tell new brokers / banks that my CRA is extremely busy, but clean. I then show them a list of properties as justification.
I should also point out that many banks now put an entry on your credit if you go guarantor too.
Quoting from my own credit check…
“XXX made on enquiry on date in reference to an application for a Real Property Mortgage account where you applied as a Guarantor for the amount of $xxx”
I have quite a few of these on my credit now, when we’ve used a company as trustee for a family trust, and been required to go guarantors as directors of the company.Keep smiling
Felicity
Hi Kttm,
All of the above is true. You apply for anything that gives you credit it will land on your CRAA. Dissappears after 7 years though if you do not default. The bank should be looking at any defaults, not just your applications(although I know they are told to ask why?)Point that out to them also-NO defaults and all those applications.
For your own records you can get a copy of your credit report for a few bucks at
http://www.baycorp.com.au/Remember you are the boss-if one bank gives you hassles because of your prowess in property dealings, talk to someone else who appreciates you for what you have achieved.
Happy Hunting
markk
Happy Hunting
http://www.kentscollections.comHi
These days with banks, a lot a things are automated. The lender or the broker imputs the data and a credit check is ususally done automatically. Scores are then generated with points received for number of enquiries, stability of employment, stability of address etc. Often things out of the norm, results in a automatic rejection. That’s when the human assessor takes over and looks at things. So sometimes you can get rejected automatically, and then pass with your explanition is received. Its happened to me a few times too.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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