Three questions every borrower asks (and needs answered)
In my experience working with many, many clients, writing hundreds of loans over more than 15 years there are three burning questions that every home loan borrower asks;
- Will you lend me the money?
- How long will it take?
- What will it cost per week, fortnight or month to pay it off?
Luckily I have the answer to all three questions.
‘Will you lend me the money’ is the biggest question? Sounds easy to ask, but finding the answer can often be a difficult process. It involves detailed enquiries about the borrowers position, including their wants and needs and matching those to lending policies with one or more lenders. Mostly we find a fit, which means the answer to the question is ‘yes’. Occasionally we can’t and the answer is ‘no’.
‘How long will it take’? I normally measure this from the time the loan application is submitted to the lender. The time can vary significantly from lender to lender and with any given lender from time to time. It could be two business days, it might be ten business days. We’re measuring the time it takes the lender to provide a Formal Loan Approval, not just a first look. Sometimes ‘how long will it take’ it is a key criteria choosing a lender, particularly if people are in a hurry
‘What will it cost‘ is critical for the borrower to know. Regardless of how much a bank or lender claim they can lend you, the loan repayments must fit into your budget. This question is often over looked, or at the very least not treated with the respect it deserves. It is the most important question of all. You must be able to afford the loan in real life. If you can’t, don’t do it.
So there you have three important questions all home loan borrowers ask and require answered. Please contact me if you want the answers for your situation. paul@halogenhomeloans.com.au
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