We were recently approached by a client who had previously received a finance pre-approval by a bank manager from a lender. Armed with the finance pre-approval, the client proceeded to go out and make an offer to purchase a property. However, once they returned to the bank with the contract to purchase, the client was informed that the finance application had been rejected. In the time between receiving finance approval and making the offer to buy the property, the lender had appointed a new bank manager, and the new bank manager was not willing to sign off on the client’s finance. There appeared to be no valid reason from the bank as to why the loan pre-approval was not honoured, however our client appealed to have the decision overturned, but with no luck.
Our initial action for the client was to review his current financial position by assessing all existing loans and financial statements to identify if there were any obstacles in the way of gaining approval for the loan. With a quick and thorough review of the client’s current financial situation, our recommendation was to approach an alternative lender that would look at servicing the existing debts a little differently which allowed a higher borrowing capacity and in turn assist the client in purchasing the property.
In addition, we were able to source a much more attractive home loan rate, which was significantly lower than the previous one. Notably, the client’s priority was not the home loan rate, but the purchase of the property as it formed part of a bigger picture. It was just a nice bonus, and one that will save the client a significant sum over the coming years in interest repayments.
With huge plans for the future, our client has been able to realise his immediate financial goals of purchasing his desired property. Through an ongoing relationship with our client, we look forward to helping our client continue to achieve his future goals and build on his current wealth through the expertise and advice from Launch Finance.