Sometimes we just can't that lender to say "yes" but rather than give up, we might just need to buckle down and prepare!
Preparation is frequently answering the questions that we would ask - if we were the lender. The first question might be "how are we going to manage to pay the mortgage?" This could involve looking at a financial calculator to see what the mortgage instalment will be. Of course we'll need to add the cost of home insurance and the local authority rates to that figure - and make sure that it fits our budget!
If we're self-employed we will need to ensure that we have financial accounts that clearly show an acceptable income. If we've had a great first year in business but the lender is hinting at requiring more, we might have to get an accountant to prepare a forecast of what our business should produce over the next 12 months. If that means we have to wait a little longer to get a loan then let's concentrate on having a great 2nd year in business!
If we're a little "advanced" in age but have a clear view of how we're going to repay the mortgage, we can get a lender to give us a loan term that is also "advanced" - if we can provide the right information. This information might include the use of KiwiSaver funds to repay loan debt at age 65, and of course the mention of that additional income when we receive the pension entitlement at that age. If we're thinking of "trading down" when we stop work then that's also important for a lender to consider.
And if after all the above, we're still not sure about our loan eligibility - give us a call at Thompson McNeill (or give us a call anyway!) - we'll take you through the key questions and help with the answers. After all a well planned "dress rehearsal" is better than a "no" performance!