So, today I had two loans approved for two clients – both of whom didn’t think they could be approved, how chuffed do you think I feel?!
But the point is, and I have a whole section on my blog on “you have almost no chance of being approved if you walk in the door of your local bank”, the point is, without knowing lending you can’t know what would and would not be approved, and you’ve got better things to do that research all of this! Lets examine:
Example 1 – Miss bad past coming to haunt her
So a lovely young professional lady starts the conversation with “I don’t think I will get approved for a loan, I’ve had credit issues in the past”. Oh dear, never good, and I don’t encourage you to get yourself in this situation, but I also say don’t give up!
10 years ago she got in trouble with a credit card, she paid it off and didn’t take the advice to “just go bankrupt” (thank god, and don’t you do that either if you can help it!) and all is good.
Today, with a good history, a great asset position, strong stable employment and a really good story put together by us she WAS approved, with the very same bank. I have no doubt if she had walked in off the street and started the conversation in the same way she would have walked away unhappy and probably never tried again. (Bank staff are often under-resourced with high targets, it’s not their fault they don’t have time to look for a solution.)
Example 2 – Mr Batchelor who has been caring for an ailing parent
This one has to do with income and assets (what we call balance sheet), an absolutely gorgeous gent has spent considerable time looking after his dad instead of building up his assets. His hours are reduced and so is his income, and he hasn’t really acheived as much as he might have wanted to – but family is obviously more important and we admire that!
Doing online calculators can be positively disheartening as they use averages – average expenses and the average policy. There’s a whole heap of info on this in another blog post.
Knowing how to stretch his income to the max – and mindful of the repayments which will be cheaper than any rent he could pay – we have an approval that allows him to buy his family home, where he has lived for 20 + years.
Sigh, this feels so good.
Bottom line – even if you don’t think you’ll be approved, give me your story warts and all and let me make your dreams come true, ok?