Hi Folks
I am a beginner and got stuck due to finance.
The problem is I've found a default from optus which I haven't realized till recently.
so I paid the amount but today my mortgage broker said the lender declined it.
Is this one default so critical not to approve mortgage??
I am confused.
Any solutions are welcome.
The inspired
Sounds like your broker wasn't doing a very good job. He/she should have checked what was on your credit file and decided which lenders it was possible to approach without your record being a problem. Sack your broker. Get Richard (Qlds007), Jamie (Jamie M) or Terry (Terryw) from these forums to take care of you.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Hi Young
Welcome to the forum and I hope your time with us.
Without the full details of the application it is difficult to say but i must admit if it is a standard Telco default i have a few lenders that certainly wouldn't have a problem with the deal.
Course i am assuming you are not buying in the middle of no-where and aren't looking for something out of the ordinary.
More info needed but certainly not a deal breaker.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
It depends on a number of things – what is the:
1. LVR
2. Telco default amount
3. When did it happen and when was it paid
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Hi Shahin
possibly
LMR- 90%
It was $290
and it said 5yr ago and paid couple of month ago.
Cheers
ps: and also thanks for other comments folks!!
Ok here is the thing – telco default are much better than financial institution defaults. Amount is also ok.
LVR is where you need to focus on. Under 80% you will have no issue with most lenders.
I assume that you cannot go to 80% and it must be at 90%. Firstly it needs to be under 90% so that's 89.90% plus LMI. There is no way you can go over 90% with a normal bank.
At an LVR of 89.90% you need to ensure the application is strong. By this I mean employment, address history, servicing, assets, liabilities, and all possible details (bank accounts, etc).
You need to provide a proper stat dec explanation of the default – i.e. why it happen, why it took you so long to pay (e.g. I didn't know it was outstanding until I had applied for finance in which I paid it straight away), receipt of payment (although it should say paid on the credit file).
Also please do not apply to any more lenders unless you know that the application is ready to go and its going to get approved. Further hits on your credit file will hurt you.
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Sorry I more thing – go with a lender that has their own DUA. Do not go with a lender that does not have their own DUA (e.g. Macquarie).
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Hi Young
Hope you got my PM response.
As i say at 90% should be fairly straight forward with the information you sent me.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
90% with a small telco default shouldn't be a prob.
Get Richard onto it for you – he will sort it out.
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]
JacM wrote:Sounds like your broker wasn't doing a very good job. He/she should have checked what was on your credit file and decided which lenders it was possible to approach without your record being a problem. Sack your broker. Get Richard (Qlds007), Jamie (Jamie M) or Terry (Terryw) from these forums to take care of you.Not fair at all….With a number of recent enquiries on a credit file negatively affecting the chances of approval (especially on a 90% + deal) I and I am sure many other brokers are loathe to check a clients file before submission in case our enquiry trips the deal over and causes an auto decline. IT DOES HAPPEN. So the best way is for a client to check themselves which doesn't count as an enquiry. The other alternative is asking the client upfront if they have had any defaults but of course this wouldn't have helped in this case.
Marty McDonald | Mortgage Experts
http://mortgageexpertsonline.com.au/
Phone MeI agree to some point on what you say. Sometimes the client doesn't even know they have a default, and then when they apply for a loan, it comes out but it's too late then. Hence why I always recommend they acquire a copy of the credit file beforehand so there are no nasty surprises.
In the case of the OP, it seems that they knew about the default as they mentioned they paid it out a few months back, but had an application rejected in the last few days. That suggests to me that the broker should have known about it, and used that to funnel the deal to the right lender(s).
Cheers
Tom
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