What the actual...? My home loan application was declined… Why?
Welcome back to Wednesdays, Thursdays, Fridays, friends! Today we want to explore why home loan applications get declined.
Being rejected is never easy, we feel embarrassed and to be quite honest, it hurts our feelings. Well, your home loan application doesn’t have to be the cause of that. Here is how: it starts with your understanding of credit – or financial hygiene, if you like.
Every time you sign a contract with a financial service provider - such as your cell phone, clothing account or a credit card, you set up a series of credit relationships. The credit bureau monitors your actions in real-time and reports whether you have a healthy relationship with credit or not. No kidding. That student credit card you got in your first year of varsity during O-week campus activations? Remember that one? The R500 limit one? Make sure it’s all paid up!
So, we guess you are now wondering what a healthy relationship with CREDIT actually looks like? Glad to see you’re still reading. It’s simple, BE CONSISTENT. Remaining consistent in repaying your current and past creditors is the ONLY thing it takes for the bank to know you are good at paying back your debts. No more, no less. No stress… The rest is about how much you can afford. In this case, the bank is likely to give a lesser offer in line with its assessment of your affordability, as opposed to declining your request outright.
Once you’ve kept a healthy relationship with credit and want to buy that lovely dream home, come see us, online of course, and we’ll get you the best home loan deals and give you our MoneyGuarantee offer of up to R25k just for using our easy-to-use platform!
No brainer!
See you again next week!
The MortgageMarket Team
