Three Things You Need to Do When Your Home Loan Gets Rejected

Can you fly without having wings? You can only dream that, certainly. The same way, you might have found your dream home, with your dream design, the dream garden, the dream study room and what not. However, do you have an equally strong financial accretion to make it yours?

Chances are- you applied for a loan and sat quietly; assured and stress-free. Nevertheless, what if your loan application is rejected. Probably, a not-at-all good feeling. Instead, even if you think of it happening, ends up giving you an empty and dissatisfied feeling. However, it happens and you might know about it in the worst possible manner.

However, you can get lucky enough in your second attempt. Not all lenders will supposedly reject your loan application. All you have to do is to follow the following three things before you try again. Since every time your loan application is rejected you increase those black marks added to your financial report, it's far better to take care of that from the next time. Have a look -

#1 Ask Your Lender for a Valid Reason
There has to be a valid reason for your loan application to be rejected. You should not feel any hesitation in asking the reason. Moreover, this will bring you to the state of knowing the mistake and being able to rectify it. At times, the reason might have nothing to do with you personally.

#2 Make Sure Your Credit History Shows a Good Behaviour
Very few lenders will approve your loan application if you have a bad credit history. Bad credit history repels lenders. Bad credit history or say a credit history, which is not at all under your control, will highlight you as an irresponsible person. For instance, overdrawn accounts, or unpaid bills will prove negative as far as your financial behaviour is being assessed.

#3 Know About the Different Home Loan Lenders
Since your loan application has been rejected, you might now be quite aware of the reason. As discussed earlier, the rejection of your loan application might have to do nothing with you personally. For instance, it can be possible that your lender rejected your loan application just because their mortgage insurer was not ready to do business. So, the next time just make sure your home lender has a different mortgage insurer.

Never underestimate the thoughtfulness and the benefit that comes along with the proper research you practice before you apply for your home loan, for the second time. A single rejection is never the end.

Are You Going to Take the Advantage of Savings on Your New Car Purchase? How? Read it here…

Now is the perfect time for buying a car if you are in Australia. Yes, you heard it right. If buying your dream car was at the back of your mind, it’s time to move it in front. It’s just because of the amount of money you are going to save while buying the car at this point of time.

Car buyers who are intelligent and wise enough end up saving on both the sides of car buying. First, it is the end of financial year sales time in the car industry offered by most of the car dealers in Australia. Which means you can make big savings right now on the drive-away price of new and used vehicles, as dealers try to boost up their sales to keep their funds flow growing.

Second is the car loan offers, which are extremely attractive right now. As per the current interest rate cut by RBA earlier this month, interest rates are at the lowest on record. Again which means, you can take advantage of low car prices and lower interest rates. It’s the right time to grab a great deal on a new or used car, as there really has never been a better time.

Moreover, if you are opting for energy efficient cars in Australia, you will soon be getting discounts on loans. As an initiative towards green environment, to reduce emissions including building upgrades and solar installations, some Australian lenders named Firstmac and the Clean Energy Finance Corporation have relied upon the agreement that they will offer low rate loans upon the financing of a green car. According to Firstmac managing director Kim Cannon, “Around $25 million would be spent on cheaper loans for environmentally-friendly cars”.

Thus, gear up to get the best rate at just the right time to secure a car loan. To help you in every step, Loans Direct make the entire process easy through its access to top Australian lenders and individual car loan products. Here, you will find a car loan that suits your budget with amazingly low rate finance deals available to fund your new wheels, allowing you to save even more.

Contact a Loans Direct Car Loan Officer to discuss your needs today.

Are You Going to Co-Sign a Loan? Consider the Following Things!

At times, you get to show your generosity to the family members, close friends and anyone dear to you by co-signing a loan taken by them. Undoubtedly, there is always a soft corner for our loved ones saved in our heart. At the same time, while you may fulfil this helpful gesture, you should know that co-signing a loan is more than just your signature. Therefore, knowing the roles and responsibilities as a co-signer ultimately becomes an issue of paramount importance.

Keeping in mind the repercussions, here are three things that you should consider before co-signing -

• Do Not Jump into the Agreement, Know the Risks  
  What shall be more risky than being equally responsible for the loan taken by some other person? However, you are not meant to receive even a single penny of the loan demanded, whatsoever negative activity is connected to the loan, will affect you equally. For instance, suppose that the actual borrower fails to make the payments on time, this will be added as a negative point on your credit report too.
  
  
• Know Not Only the Risks, Read Out the Terms and Conditions
  No loan is granted without a set of certain terms and conditions. In addition, so will be the loan your closed one has applied, come with- a set of terms and conditions. Since your credit report is equally at stake, you should surely read out the set of those terms and conditions proposed. This shall include reading out the total amount of the loan, length of the loan, interest date as well as the due date. You determine if your family member or friend would easily be able to make the payments. Assume that he/she fails to do so and in that case, imagine yourself making payments. Make sure you’ll be able to, in such case.
  
  
• Stay Always Ready With an Exit Plan
  “Plan B” shall always be there. It’s not necessary that things go wrong, but, in case they do, you have to be steady and ready with your exit strategy. You can keep your credit report from taking a hit if you plan to have a leeway in the return payments. For instance, if the borrower is not able to make the payments, you can think of using the money kept aside for an inevitable misshapen. There are cases that the loan has not been out for some time. This implies that you might not be able to remove your name from the loan. Adding, be aware of the fact that only some loans do actually have the option that allow you to remove your name.

Make sure that you ask everything you’re not so sure about. Bad Credit Rating would certainly not be an option you may consider, anyhow. So, in most of these kinds of financial processes, just use the power of your knowledge smartly and wisely!