How Two Home Renovators Get Their 2-Time Rejected Loan In 1 Week

How Mortgage Corp Helped Home Renovators Got A 2-Time Rejected Loan Approved In 1 Week

Refinancing Home Loan- Home Renovation Success

Summary

Two home renovators, Jimmy and Steph got their home loan rejected by two different banks, after 8 exhausting weeks of going back and forth.

Luckily, Mortgage Corp came to the rescue.

They followed Mortgage Corp’s advice and got all required documentations ready, and after Mortgage Corp submitted the application, the loan was approved within a week.

Objectives

Refinance home loan and get $200,000 to build large decking and expansive patio with landscaping and earthworks

Challenges

Banks considered $200k cash out as structural home renovation and required a building contract

Jimmy was a carpenter, he’d build the patio himself, therefore couldn’t provide no building contract

The banks Jimmy had approached didn’t do home builder loans

Solutions:

Provided banks with written quotes on materials and works for the decking, patio, landscaping materials and sewage, so we could show the bank how much it was gonna cost to get things done, explaining why we wanted $200k cash out.

Results

Once we submitted all the documents, the loan was approved within a week.”

You may wonder why the other two banks rejected their loan, while Mortgage Corp could get the loan approved – and so quickly.

This is where experience comes in. With over 15 years of mortgage experience and hundreds of millions of successfully settled loans, Mortgage Corp knows the lenders’ products, policies and people intimately to get things done effectively and efficiently.
In addition, he also makes things easy for the bank credit managers when he submits applications. Since everything is there in the right order, the credit manager only needs to go, “tick tick tick, stamp, approved”!

Refinance Home Loan To Renovate Success Story Unveiled

Two home renovators, property investors, husband and wife, to protect their privacy, let’s call them Jimmy and Steph.

They had a home and had gone through the loan application process before, so thought they knew how to get a loan. They went straight to their favourite bank and said, “I want to refinance our home loan and get $200k cash out.”

The bank manager asked the typical questions and said, “Yeah, no worries. You’ve got a house worth $700K and only owe $300k, you’ve got a lot of equity and based on what you have told me, you can service the loan. We’ll lend you the money, no probs.”

“Let’s start the loan application,” said the bank manager.

“Too easy.” Jimmy smiled.

He sent through all the paperwork the bank manager requested and started planning their reno.

A few days later, Jimmy received a call asking for more paperwork,

“Why didn’t you ask me when we started the application?” Jimmy was slightly annoyed, partly because he was disappointed his loan had not been approved yet, so he couldn’t start the reno tomorrow, and partly because he felt his time had been wasted.

This was when things started to go sideways.

The bank kept coming back to Jimmy with requests for additional documentation, then the following week asking for more information, because something else popped up the bank manager didn’t know. And things started to drag out…

Before they knew it, 6 weeks had passed and the loan application had gone nowhere.

With every bank contact, Jimmy and Steph’s hopes soared, only to then be shot down in flames.

After such an emotional roller coaster, Jimmy had finally had enough and said, “I know I can afford the loan. If you’re not going to lend me the money, I’m taking my business somewhere else.” And he did.

He found another lender and went through similar questions and response, “No problem, you can borrow $200k. Let’s start the loan application.”

Paperwork was sent and a few days later whenJimmy got a call from the second lender, he got a bit nervous.

“We need some further documents from you, Jimmy.”

“Not again!”

“In order to proceed with your loan application, we need you to supply a fixed price building contract.”

“But I’m a carpenter, its a decking and patio, I can build it myself, why would I pay someone else to do it?”

“Oh, so you’re an owner builder ? Hmm, we don’t do builder owner loans. Sorry, we can’t lend you the money…”

The second lender rejected the loan because Jimmy wanted to cash out $200k to build a large decking and expansive patio with landscaping and earthworks… under that lender’s policy, this loan would be considered as structural changes, even though it was still only a decking and patio.

Remember, banks assess applications based on what you put in the application. If you don’t explain what the money is for correctly, they’ll assume what it is based on their checklists. For example, when they see cash out $200k, on their checklist, it says, 200k-300k cash out, house renovation-structural.

Jimmy was infuriated at the bureaucratic red tape of banks.

That night when Jimmy went on Facebook to rant about the two banks, he came across Mortgage Corp’s video on self-employed loans.

“This guy seems to know what he’s doing.”

Jimmy’s wife, Steph was quite sceptical of mortgage brokers, so they both went online and typed in, “Mortgage Corp”. They read all those raving reviews about Mortgage Corp and the team, they proceeded to watch more of Mortgage Corp’s videos. Then they rang Mortgage Corp, asking to speak to Mortgage Corp.

At the initial face-to-face loan strategy session, Steph got very emotional while Jimmy told Mortgage Corp their experience with the other two banks. Mortgage Corp could feel their pain and frustration…

Mortgage Corp quickly identified a few things that needed to happen before a loan could be approved and he promptly came up with a plan. Here’s what Mortgage Corp said

It’s not gonna happen straight away, I need you to follow my process and supply the exact docs required. It’s essential they follow my process as that’s my tried and tested formula for hundreds of millions of successfully settled loans.

I ordered a valuation upfront with a lender I knew that would consider the application favourably, if everything stacked up.

It was essential to have a good idea how much their house was worth. This made the process smoother when the application was submitted, as their home value was one of the factors that determined how much they could borrow. I also had a few other options up my sleeve if things didn’t go as planned with this lender.

All these needed to be planned before we even submitted the loan.

I got Jimmy to get written quotes on materials and works for his decking, patio, landscaping materials and sewage. Not contracts, just quotes, so we could show the bank how much it was gonna cost to get things done, explaining why we wanted $200k cash out.

We then got all the required documents and packaged them up, explained what the money was for and provided evidence for it.

Remember, banks just want to know that you’ll be able to repay the money they lend you. So I outlined all the reasons why Jimmy could service the loan. For example: I explained how the reno project would not affect his income because he could work weekends, after hours and in between his normal job to build his own decking.

I already knew a particular bank had a policy to allow the amount of cash out that is required; applicants just need to prove what the money was for, and that we were not changing the structure of the house.

We had the valuation, we had the quotes, so the bank didn’t need more information.

Jimmy followed my process and got me the right documents and information needed,

Once we submitted all the documents, the loan was approved within a week.”

You might say, “Well, my situation is different. I’m not a tradesperson; I won’t do the decking myself.”

Well, every loan is different and everyone’s circumstances are unique. You may not need a decking. You may need a new kitchen or bathroom or you may need a house, but regardless of what the circumstances are, if you knew every bank’s policy and lending criteria, it wouldn’t matter what the issues were. You only go to the one that matches your requirements, rather than going to 10 banks and getting rejected, costing you money, stress, opportunities, time and a bad credit history that will make it difficult to get loans in the future.

Unfortunately, from time to time we do have to rescue property buyers from losing a deposit, a home and sometimes even a marriage and hope. After all, a property is one of the most expensive purchases of many people’s lives.

Keep in mind, not every loan will be approved in one week, but it’s always essential to plan ahead and get the foundation right so the loan can be processed quickly and smoothly.

To make sure you get everything right the first time without suffering from the loss of money, time, opportunities, sleep … we invite you to book an Obligation Free Loan Strategy Consultation with Mortgage Corp today.

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About Mortgage Corp

Mortgage Corp is a multi-award winning Hall of Fame Elite Mortgage Broker

Mortgage Corp has been helping property buyers achieve their dreams over the last 10 years with hundreds of millions of successfully settled loans

Mortgage Corp is known for his strategic approach to complex lending and ability to reach fast, successful outcomes for property buyers where other mortgage brokers and lenders could not.

✍Here is just a small sample of what property investors and home buyers have said about Mortgage Corp 😇😇

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How Mortgage Corp Helped Home Renovators Got A 2-Time Rejected Loan Approved In 1 Week

Refinancing Home Loan- Home Renovation Success

Summary

Objectives

Refinance home loan and get $200,000 to build large decking and expansive patio with landscaping and earthworks

Challenges

Banks considered $200k cash out as structural home renovation and required a building contract

Jimmy was a carpenter, he’d build the patio himself, therefore couldn’t provide no building contract

The banks Jimmy had approached didn’t do home builder loans

Solutions:

Results

Refinance Home Loan To Renovate Success Story Unveiled

A few days later, Jimmy received a call asking for more paperwork,

I ordered a valuation upfront with a lender I knew that would consider the application favourably, if everything stacked up.

I got Jimmy to get written quotes on materials and works for his decking, patio, landscaping materials and sewage. Not contracts, just quotes, so we could show the bank how much it was gonna cost to get things done, explaining why we wanted $200k cash out.

We then got all the required documents and packaged them up, explained what the money was for and provided evidence for it.

We had the valuation, we had the quotes, so the bank didn’t need more information.

Jimmy followed my process and got me the right documents and information needed,

Once we submitted all the documents, the loan was approved within a week.”

About Mortgage Corp

✍Here is just a small sample of what property investors and home buyers have said about Mortgage Corp 😇😇

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