Too Many Enquiries - Lender and LMI Advice

[Corey Batt]

I've done a few of these in recent times, with extremely active files (40+ hits), however the broker does need to show a lot of finesse in getting them across the line. Generally we need to avoid credit scoring lenders, but stay within DUA lenders and their policy to make them slide. They may still ask for the reason behind the active file, but a concise letter outlining the reason, as well as how you're not continuing this pattern will generally keep everyone involved happy.

For the most part however, if you can avoid it it can be a wise move to let things simmer for a while, continue saving/reduce debt whilst letting the credit file repair itself by not putting any new activity for a few months.

 

[krystal27]

Thanks Corey, as much as I'm smitten with the property we're going to let it go for now. I'm hoping by the time we are ready to go - debts minimised and savings where they need to be that the credit file is looking healthier.

 

[Moyston]

Yes David I should cancel the MasterCard but my husband has hidden it, hahaha!

even if you dont use it..the bank will say its open...dont need the card to cancel it...

 

[Peter_Tersteeg]

2k per month,
500 per week
Isn't too bad for a newly married couple to save in my opinion

Btw. At one stage I had 15 enquires in 8 months due to loans,

My loans were approved,
Does the nature of the enquiries matter?

Results matter. 15 enquires isn't a problem if you've got the portfolio to match. 15 enquiries with nothing to show for it is a problem.




The discussion doesn't matter. In the most optimistic scenario you need 5% as a deposit, stamp duty and any mortgage insurance that can't be capitalized. Even with first home owner discounts this comes to about 10% of the purchase price.

 

[S.T]

Hahaha, depends which way you look at it - we currently live in an old inner city house where we pay for the location. We're looking to buy well out in the suburbs to be closer to family and friends, and only need a unit at this stage. So lifestyle change in terms of location, but quality of home, no.

So why don't you move to that location now and rent somewhere a lot cheaper?

Keep reading this forum, it's amazing for personal finance education and how others approach debt, saving, investing.

Good luck with the debt reduction, keep saving!

 

[krystal27]

I thought I'd provide an update on this thread given you all gave me such great advice.

Since early December we've knuckled down, reduced our debt, and have saved a 5% deposit for a house and land package. The land doesn't settle for some months, so we have time to save more.

When I went into see a broker he checked my credit file and said it was clean and my credit score was strong and he didn't know what I was worrying about. He asked about two of the inquiries I had, and one I was able to say was declined due to too many inquiries in previous months, and the second i was able to say was approved as a debt consolidation loan. He was satisfied with that, and said he doesn't anticipate any issues getting approval especially given we're paying way more in rent than our mortgage would be anyway ($2080pm), and still managing to put $3k in savings away each month.

Our goal is to live in it initially, and double the replayments for the first five years (do-able as long as I maintain my current salary) so we can then use the equity to add to our property portfolio and get moving. This block of land we're building on we've chosen based on its vicinity to schools and transport and the thriving rental market, so definitely a short term strategic move to get our foot in the door.

 

[Redom]

I thought I'd provide an update on this thread given you all gave me such great advice.

Since early December we've knuckled down, reduced our debt, and have saved a 5% deposit for a house and land package. The land doesn't settle for some months, so we have time to save more.

When I went into see a broker he checked my credit file and said it was clean and my credit score was strong and he didn't know what I was worrying about. He asked about two of the inquiries I had, and one I was able to say was declined due to too many inquiries in previous months, and the second i was able to say was approved as a debt consolidation loan. He was satisfied with that, and said he doesn't anticipate any issues getting approval especially given we're paying way more in rent than our mortgage would be anyway ($2080pm), and still managing to put $3k in savings away each month.

Our goal is to live in it initially, and double the replayments for the first five years (do-able as long as I maintain my current salary) so we can then use the equity to add to our property portfolio and get moving. This block of land we're building on we've chosen based on its vicinity to schools and transport and the thriving rental market, so definitely a short term strategic move to get our foot in the door.

Good to hear Krystal. As Corey mentioned, with these ones showing about of finese and avoiding credit scoring models generally make it acceptable.

If possible it would definitely be advisable to do both the loans together.

 

[perthguy]

Our goal is to live in it initially, and double the replayments for the first five years (do-able as long as I maintain my current salary) so we can then use the equity to add to our property portfolio and get moving. This block of land we're building on we've chosen based on its vicinity to schools and transport and the thriving rental market, so definitely a short term strategic move to get our foot in the door.

Instead of doubling the repayments, why not set up an offset account and put the money into that? It means you will pay less interest but have the funds available for your next investment property.

 

[krystal27]

Sounds like a good idea!

 

[Corey Batt]

Are you going to keep the current property as a PPOR and then expand by purchasing more IP's?

If so don't use the funds directly from the offset account as the deposit, prior to purchasing place the funds into the loan account, cancel the redraw amount and have a new split formed for investment use only - this will minimise your non-deductible vs deductible.

 

[tobe]

I thought I'd provide an update on this thread given you all gave me such great advice.

Since early December we've knuckled down, reduced our debt, and have saved a 5% deposit for a house and land package. The land doesn't settle for some months, so we have time to save more.

When I went into see a broker he checked my credit file and said it was clean and my credit score was strong and he didn't know what I was worrying about. He asked about two of the inquiries I had, and one I was able to say was declined due to too many inquiries in previous months, and the second i was able to say was approved as a debt consolidation loan. He was satisfied with that, and said he doesn't anticipate any issues getting approval especially given we're paying way more in rent than our mortgage would be anyway ($2080pm), and still managing to put $3k in savings away each month.

Our goal is to live in it initially, and double the replayments for the first five years (do-able as long as I maintain my current salary) so we can then use the equity to add to our property portfolio and get moving. This block of land we're building on we've chosen based on its vicinity to schools and transport and the thriving rental market, so definitely a short term strategic move to get our foot in the door.

id recomend a lender that doesnt credit score, that does construction to 97% without an interest rate loading, and one that releases the first home owners grant at land settlement.

make sure you have the full building contract, and valuation completed before the land finance clause expires.

 

[Rolf Latham]

id recomend a lender that doesnt credit score, that does construction to 97% without an interest rate loading, and one that releases the first home owners grant at land settlement.

make sure you have the full building contract, and valuation completed before the land finance clause expires.

Funny guy

Pretty sheepish that one

Ta

Rolf

 

[Mick C]

Funny guy

Pretty sheepish that one

Ta

Rolf

^ hahaha.....sigh at these brokers joke ( so sad a friday...)

krystal27
1. Make sure you can get the land and BUILD loan ...no point getting land loan only and not getting approved for the build esp if your going to be paying $14-20k in LMI.

2. I would also highly suggest a lender that doesn't credit score and one that can by pass the LMI provider- even better!

Hopefully it's all ok and goes well...update us as you go