Signing a Pre-approval application

[LearningMan]

Quick question ... my younger brother will be seeing a broker to see how much he can afford for his first home this week.

Just out of curiosity ... what are the implications of signing a pre-approval if he is asked to do so ? Should he sign if at this stage he only want to find out his borrowing capacity ?

Appreciate any advise.

 

[Aceyducey]

Quick question ... my younger brother will be seeing a broker to see how much he can afford for his first home this week.

Just out of curiosity ... what are the implications of signing a pre-approval if he is asked to do so ? Should he sign if at this stage he only want to find out his borrowing capacity ?

LearningMan,

There's no reason he should have to sign anything to get an idea of his borrowing capacity.

The broker should be able to plug in the relevant info into his laptop & it will immediately provide his potential borrowing capacity from a variety of lenders.

If the broker requires a signature for any reason he should consider speaking with a different broker.

When seeking a pre-approval (and signing) part of what he's signing will probably include the right for the lender to check his credit record.

Too many hits (enquiries) on your credit record can be a problem for certain lenders - so I'd discourage signing unless he's fairly comfortable with a given lender & intends to use their loan facilities.

Note that your brother should request a copy of his credit record (CRAA) in any case (it's free). This is to ensure there are no old or mistaken credit notes on it that he's not aware of. Mistakes can be corrected, it can be a tough process but can vastly improve his ability to seek loans.

Cheers,

Aceyducey

 

[MF35]

Who exactly does one speak to if they want to get their 'Credit Record'? I haven't had any dramas thus far but would like to see it regardless.

Thanks,

MF

 

[Rolf Latham]

Hi MF

www.baycorp.com.au

Ta

rolf

 

[Jamie]

Who exactly does one speak to if they want to get their 'Credit Record'? I haven't had any dramas thus far but would like to see it regardless.

Thanks,

MF

Hi MF,

Details of how to access your credit history are on the Baycorp Advantage website - go through to the main page and click on My Credit File

Jamie.

Edit: Rolf beat me to it

 

[MF35]

Thanks Rolf and Jamie. Found the free request section eventually but missed first time through. Hence why I deleted the previous post.

MF

 

[Aceyducey]

It is free MF35.

Baycorp just wants you to pay for it

You can source it for free. From Baycorp as well.

See: http://www.mycreditfile.com.au/pers...credit_services.asp?CountryID=1&UserTypeID=11

Cheers,

Aceyducey