Pre Approval Home Loan [Do you need it, what is the process?]

[@MortgageBrokerAustralia]

For free home buying resources, calculators and downloads check out the First Home Buyers Hub www.huntergalloway.com.au/hub

[@LR-zt3bp]

Hey guys, back again with another question for you. Is it ok to get 2 different pre-approvals from 2 different lenders at the same time? You said getting too many will affect credit rating, where does the line of too many begin? I ask as I went ahead with pre-approval not realizing the square meterage required for their loan approval is over the average of the properties I've been viewing. Yikes! Cheers for being legends!

[@MortgageBrokerAustralia]

Hey Lariasa, awesome question!! 🙌 There is nothing stopping you from applying for pre-approvals from different lenders, but you're right it can reduce your credit score by doing more enquiries. If you have a high credit score this shouldn't be too big a drama, but if your credit score is under 650 it could have a bigger impact. It isn't very common for people to do this, reason being when you apply for the pre-approval at Bank 2 they will look at your credit file and see you recently applied with Bank 1 - Bank 2 will get concerned you might have gotten knocked back by Bank 1, and could want more information and make it a bit more difficult. In your situation, given the type of property wasn't accepted by Bank 1 you can explain it to Bank 2 and it should be ok. The type of unit and even postcode are one really common reason for having your pre-approval declined, so make sure your new Bank 2 will accept the property and even the building its in! (some banks have blacklists for specific buildings if they have too much lending in it). More info www.huntergalloway.com.au/loan-declined-after-pre-approval/ or hit me up if you've got any other q's! Cheers, Jayden. [e-mail]

[@YuhaoBoku]

Great video guys! Been watching a whole heap as I'm preparing to buy my first home in about 4 months. Got a question regarding credit scores, I've checked two of the major credit score agencies, Equifax and Experian, and both have very different scores for me; mid 500 and mid 700 respectively. Given they differ so much, should I be concerned? I remember vaguely in one of your videos you guys mentioned that credit score below 600 may have issues - which in my case one is above and one is below.

[@MortgageBrokerAustralia]

Hey Yuhao, great question. Right now we're transitioning from static credit scoring to live credit scoring, so if your credit score is low just because you've made too many credit enquiries for credit cards, personal loans, etc - this should be managable. If however your credit score is low because you've missed payments on existing cards, etc then that can be a bit of a problem. If you want I can check it out for you, shoot me an email jayden @ huntergalloway.com.au and can check it out for you. Cheers, jayden.

[@YuhaoBoku]

@@MortgageBrokerAustralia Hey Jayden, I've obtained a copy of the Equifax report, and it seems like the low credit score is due to number of enquires made, 5 in the past 2 years (interestingly, Experian says I've made 3 instead). No defaults, late payments or anything like that. Can you tell us more about that live credit score system you mentioned? Is it to do with CCR? Cheers

[@MortgageBrokerAustralia]

@@YuhaoBoku Yeah the live credit scoring just has your repayment history across various credit cards, personal loans etc. My understanding is it only reports on there if you are over 14 days late but will ultimately impact your credit score. Speaking with a few senior people at the banks it sounds like the banks will use your credit score in the future to determine what interest rate you will receive (similar to the USA) so its worth keeping that in mind for the future. Cheers

[@jaeezzy1]

Hi guys thnx for ur vids with all gr8 info. Recently I've run into a situation - bank has given me pre-approval but has mentioned tat since they can't accept my payslip as it doesn't have company logo, leave balance & bank details they have asked me to provide income statement frm Mygov site frm July - Sep 2021 along with bank statement to back it up . But since my employer doesn't have this uploaded i cant provide them as they are saying there were filing errors and only partial data was uploaded. They are not sure how long it will take to fix this error and I'm running out of time. There's only 2 weeks of income statement from July uploaded in mygov. My employer didn't have this uploaded last year either so I'm guessing they only started STP reporting from this year. Can you please advise what my options are? Thanks

[@MortgageBrokerAustralia]

Thanks Jay, this is a tricky situation. Some banks will take 3 months salary credits to validate income. So long as the salary credits are consistent. This might be a good option. Feel free to reach out with us also if we can be of any further assistance, www.huntergalloway.com.au/contact/

[@charveyurbano4974]

Hey guys. What’s after the pre approval? How long is the loan process before knowing you approved by your loan officer

[@MortgageBrokerAustralia]

Thanks Charvey, once you've found the property the bank can proceed with a formal approval. This will take about 1 - 2 weeks.