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 Neil’s advice and got all required documentations ready, and after Neil 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 Neil 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, Neil 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”!
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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 Neil’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 Neil and the team, they proceeded to watch more of Neil’s videos. Then they rang Mortgage Corp, asking to speak to Neil.
At the initial face-to-face loan strategy session, Steph got very emotional while Jimmy told Neil their experience with the other two banks. Neil could feel their pain and frustration…
Neil 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 Neil 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.
1️⃣ 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.
2️⃣I 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.
3️⃣We 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.”
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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 Neil today.
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About Neil Carstairs
Neil Carstairs is a multi-award winning Hall of Fame Elite Mortgage Broker
👍Neil has been helping property buyers achieve their dreams over the last 10 years with hundreds of millions of successfully settled loans👏👏
👍Neil 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 Neil Carstairs 😇😇
👍👍MORTGAGE BROKER WITH A DIFFERENCE 💯👍👍
“Neil Carstairs of Mortgage Corp is not only a first class mortgage broker, they are also a business well up with the modern times & can easily say that their service, knowledge, expertise & genuine ‘time for you’ attitude is second to none.
Myself & my wife have been on the hunt for a decent mortgage broker for 5 years after being through a few. We hold multiple properties so obtaining the right finance & a broker that 100% understands our financial setup is crucial to us.
We felt Neil never tried to sell us anything, gave us great advice, communicated A1 & worked with us in making the right decisions.
We are now not only in a better cash flow position but as well able to make some dream additions to our family home.
Highly recommend Neil & can confidently say that he exceeded our expectations. ” LEE
😇😇THANK YOU NEIL FOR HELPING WITH OUR COMPLICATED LOANS 😇😇
“As multiple properties investors and self-employed business owners, we knew our loans were sophisticated. Neil Carstairs from Mortgage Corp has deep knowledge and many years’ experience to accommodate the complexity of our loans. In order to optimise the outcome for us, he patiently considered many factors and compared multiple options for us. His service was professional and highly ethical. Highly recommend Neil and Mortgage Corp! ” – CONG
👍👍INFORMATIVE, PROMPT AND HAPPY TO HELP👍👍👍👍
“In the aggressive real estate market where new buyers are often lost and unsure, Neil was a breath of fresh air. He was generous with his time in explaining our options as well as keeping us informed of the process once things were underway. Neil’s experience meant we could rely on him to find the best product as well as let us know what to expect at each step. He was able to anticipate all the needs of the banks and the legal teams meaning our mortgage was perfectly teed up going into settlement. Bravo and thank you!” K van Leest
👍👍FANTASTIC MORTGAGE BROKER, HIGHLY RECOMMEND 👍👍
“Fantastic service from Neil and his Mortgage Corp team.
As an investor and having used other mortgage brokering services previously I have found Neil’s service to be exemplary, the communication and honesty from the very start has made our latest purchase and refinance a satisfying experience.
Neil’s knowledge allowed us with multiple mortgages to secure another investment property and reduce all of our mortgages to save us money across all our loans.
What seemed to be too hard for other brokers was right in Neil’s wheelhouse and we got exactly what we were after.
Thanks again Neil for the great work, look forward to dealing with you again on our next venture”. JEREMY
👍👍PROBLEM SOLVERS👍👍
“The team at Mortgage Corp are fabulous problem solvers. Their support, service and expertise is second to none. I cannot recommend them highly enough. We would not be where we are today without them. Both myself and my family cannot thank them enough. Special thanks to Neil and Doug who pulled out all the stops to ensure we were happy.” RACHEL
👍👍HE KNOWS HIS STUFF👍👍
“We had the pleasure of meeting with Neil & his team who made the purchase of our first home so easy.
Despite working with a large financial institution and receiving staff perks, I went to Neil because he knows what he’s doing. He cleared all the irrelevant information we were given previously and showed us how we can purchase now. Something that a number of lenders failed to do. On top of that, he picks up his phone.
Thank you Neil, Doug and the team for helping us get our foot in the door. We appreciate your awesome work!” GIANG
💕HAVE MY BEST INTEREST AT HEART💕
“Neil made the idea of an investment property purchase easy. He guided me through the whole process and made it clear that if it is not in my best interest or financially possible to look at a property he would not push the issue. Now I have the opportunity to purchase one, it gives me confidence to continue to look at different areas to start my portfolio.Thanks to everyone at Mortgage Corp.” MATT
👍👍TOP NOTCH 👍👍
“My partner and I bought our first property through Neil at Mortgage Corp. His service was top notch and virtually pulled a rabbit out of a hat to help us secure our first loan. He responded extremely quickly to emails and calls and was generous with his time for our endless questions! I can’t recommend Neil and Mortgage Corp enough, we will definitely come back for our next loan. Also, thanks for the picnic backpack, we’ve used it heaps”. Carly
👍👍TRUSTWORTHY 👍👍
“Neil at Mortgage Corp is reliable and efficient. He has been our broker for a few years and we continue to rely on him and would highly recommend him. Neil is trustworthy and he makes the process seamless, always contactable and professional. Always happy to deal with him.” Diana
👍👍💯Best Broker in the business👍👍
“I first contacted Neil July last year after being turned down by a few mortgage brokers as my name was on another mortgage which I co buy with my brother as the house was only a few months old and I’ve been told that no bank would lend me any money. I filled out the form at mortgage Corp and Neil made contact with me the next day. I explain my situation and Neil told me that I’m screwed but he can help me remove my name from the other loan even though it was only a few months old so I can buy a property. Almost 7 months later and I moved in to my property last Friday and also Neil refinance my brother and sister in laws loan and got the A even better deal so win win situation. If it wasn’t for Neil I wouldn’t be able to buy any time soon. I can’t recommend Neil and Doug at mortgage Corp enough. The service was next to none thank you Neil you’re a legend.” Maui
💝FANTASTIC MORTGAGE BROKER WHO GOES ABOVE AND BEYOND💝
“We cannot thank Neil enough for the service that he provided when we were purchasing our property. Neil was absolutely amazing throughout the whole process. Neil went above and beyond to provide us with exceptional advice, always making us feel like we were his only client. We would highly recommend Neil to anyone wanting professional advice when choosing a Mortgage. Thank you Neil it was an absolute pleasure working with you.” Molly
👍👍Neil’s Da man! 👍👍
“Right from the onset, Neil was engaging and straight forward with his knowledge sharing and recommendations. Neil has the right contacts to make things happen quickly and seamlessly. Very responsive and to the point when you require assistance. We look forward to partnering with him again.”
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