Why use a bond originator instead of going directly to banks
So you found your dream home and you have approached the bank and after jumping through some hoops with paperwork, various banking personnel you find that your application has been rejected due to some algorithm on the banking system.
It doesn’t matter who you try and speak too, the bank's systems are in place and there is generally no way to change their mind. Such is the world of banking today, no negotiation. If the bank's computer system says you do not meet the criteria, then that’s that, you walk away empty handed.
In this situation, a bond originator could be the solution you are looking for. Bond originators have come along at the perfect time. There was a gap in the market and they took the opportunity to change the way in which people secured a home loan. Bank originators search for a bank that will grant the bond and in many cases, find the bank which offers the best rates.
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The fact is, originators have taken the pain out of raising the finance for a bond. They have a keen understanding of what the banks are looking for and ensure that they get the right information in the proper manner. In fact, if you do some research into bond originators, you will find that they have a very good success rate turning rejections into approved bonds.
Another major benefit when it comes to using bond originators is that their services are 100% free of charge. They get paid by the banks if they can get you your bond approved so this also ensures that they work extremely hard to get you the best deal, otherwise they don’t get paid as well.
Although generally speaking they have a high hit rate when it comes to getting bonds approved, there are situations where, no matter what they do, they may not be able to turn your rejection into an approval.
Banks have strict lending criteria and there will be times where no amount of trying by the originator is going to get you that vital approval.
One of the banks main reasons for turning down a bond is the client's credit score. Even if you believe your record is clear, the banks are going to have a look at the credit history as well as your affordability, amongst other things. If they feel there is a high risk involved, they will turn down the application.
Choosing a bond originator is a better option than using a bank under many circumstances. Before you go ahead and employ a bond originator’s services, ensure that you can, in fact, afford the bond by checking just how much of a bond you qualify for, and most importantly, do a personal credit score check to avoid any unnecessary disappointments
One other important criteria the banks will look for when applying for a bond is the value of the properly. If the banks do not find value in the property, they will do one of two things. Either decline the application or they will request a larger deposit.
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