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In some cases, your loan can be automatically declined without being read or assessed by anyone at the bank you are applying to.
This is because many lenders now use an automated online system to allocate a risk score to applicants. This calculation is based the stability and income of your employment, your credit history, and the type of property used to secure your loan.
Lenders prefer to approve loans to people in a stable financial position, and who are likely to make their repayments in full and on time, and stay out of financial difficulties. However, remember different lenders have different ways of assessing your circumstances. A mortgage broker can help you apply to a lender who will view your situation more favourably.
At Naritas, our mortgage experts know which lenders use a credit scoring system, and which use a more ‘common sense’ approach to assessing loan applications. We have experience with our lenders, and understand how credit scoring works. This lets us make an educated decision on which lenders to apply to, as we know how a lender is likely to assess your application.
For more information, or help with your home loan application, call us on 1300 558 887 or Chat Live now.

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