Is fear of home loan rejection holding you back from your life goals?
Scared to apply for a home loan? You’re not alone. Fear of rejection has stopped one in five Aussies from applying for finance over the past year. We explain what’s driving this fear, and how you can boost your chances of getting approved.
No one enjoys rejection, especially when it comes to important life decisions. Whether it's applying for a new job or proposing to your partner, the possibility of rejection is always there.
But we still take the risk because the potential rewards often outweigh the fear of being turned down.
The same goes for applying for a home loan. While the fear of home loan rejection is real, getting a ‘yes’ from a lender brings you one step closer to owning your dream home.
In fact, a recent Finder survey revealed that one in five (19%) Australians avoided applying for finance, including home loans, in the past year due to fear of rejection.
The rejection concern that bothers borrowers
According to the research, one key aspect of being knocked back for a loan raises particular concerns for people – and that’s what rejection could do to their personal credit rating.
Let’s set the record straight here.
Being rejected for a loan is unlikely to affect your credit score – a knockback won’t even appear on your credit file.
The thing that is much more likely to impact your credit rating is applying for a loan in the first place.
When you submit a loan application, the lender will usually take a look at your credit report. This is called a ‘hard enquiry’.
It is these enquiries that can lower your score, and they can stay on your credit file for up to five years.
That’s why it makes sense to minimise the number of loan applications you make.
Better still, try and stick to one application and get it right the first time. And that’s where we can really help you out.
How to overcome fear of home loan rejection
Applying for a home loan can be nerve-wracking. After all, there’s a lot riding on loan approval.
But if fear of rejection is holding you back, there is a simple solution. And that’s getting in touch with us.
We can walk you through your credit report to explain any issues that could raise concerns with a lender. And if your credit score is a little low, we can share tips on how to improve it.
Keep in mind though that your credit score is just one piece of the picture that banks look at.
We look at your total position in terms of home loan readiness.
Your income, household expenses, any other debts, and a variety of additional criteria that vary between lenders, all go into the mix of factors that decide whether you get the green light for a loan.
We’ll review it all, help you iron out any kinks in the application, and then line you up with a lender (and loan) that’s a good fit for you.
Don't let fear of rejection hold you back from owning a home! Contact us today to review your loan readiness and boost your chances of pre-approval.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
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