What can you do if your home loan is rejected
When you apply for a home loan, the two primary checks the lenders make are the credit score/account history and your income. If either of these do not meet the lender’s minimum requirements, the loan application will unfortunately be declined.
Ooba Home Loans article on Businesstech provides great insight into what you can do to fix your credit record if your home loan application is rejected.
Click on the button to read the article:
Repair your credit record with Debt management
In Ooba’s article they provide the following advice for you to repair your credit record:
If you have a low credit score due to an impaired credit record, you will need to try and settle your debt as quickly as possible. Dyer recommends the following tips to help bolster your credit score:
Pay your bills on time.
Settle and close accounts.
Pay more than the minimum instalments on existing debts.
Avoid applying for additional credit over this period.
On paper these steps may look simple, but for someone that is already in debt it can be difficult to make the changes needed to fix the problem. Without discipline it will be hard to settle and close accounts or avoid applying for additional credit. People get “credit fatigue” and as long as they have access to credit, there will always be the urge to spend more.
That’s why our debt management plan is designed to help people that don’t have the will power to make it on their own. By employing the services of a debt expert, you place the responsibility of paying your debt and fixing the problem in the debt experts’ care. They have years of experience and smart ways to clear your debt for you as soon as possible.
The debt expert will ensure your bills are paid on time and settle and close paid up accounts. One of the benefits will be to settle prescribed debt so your total debt is less. Any old debt will be removed from your credit record so you pay back less and become debt free sooner.
The debt expert will also ensure that once one account is paid up the extra funds will be allocated to other accounts so you pay them up even quicker. While you are under the program you will not make more debt so that you can reach your goal of improving your credit record. Remember you need to have disposable income left after paying your bills to qualify for a home loan. That’s why reducing your debt will be necessary to help you to qualify.
The reason we recommend debt management as a tool to fix your credit record is because it has no court order. If you want to buy a property the last thing you want to do is go under debt review, administration or sequestration. All these programs have a court order and will affect your goal of buying a home. A court order is just another challenge that you need to clear so it makes your situation worse off.
With debt management there is no court order or fixed period. You use the program to help you pay up your debt so when your credit record improves you can stop the program and look at applying for your home loan.
Take 5 minutes to read about how the debt management plan can help you on your path to improve your credit record.