Getting over the line pt 4: Difficult deals explained

by MPA25 Oct 2012

While there’s no replacement for experience, it can be enlightening to see how other brokers have gotten through difficult transactions. MPA asks brokers to describe a tough loan situation and what they did to get the deal over the line.

 
Otto Dargan, Home Loan Experts
Loan scenario: Two friends using separate unit trusts to buy a property together. The property was in a mining town, they wanted to borrow 95%, subdivide and then build a duplex. One of the customers was also on probation at a new job.
 
Challenges: The problem was the combination of many issues. If a customer just has one of these problems then normally we can get it done. However when there are several issues all with the one deal then it just can't tick the box with any lenders.
 
Getting it over the line: We did a lot of research and we ended up finding a lender that could help. Doing the research up front makes a lot more sense than trying to push a deal through with an inappropriate lender.
 
Lessons learned: Normally we would work with customers to "keep it simple" which would have made the deal much more appealing to a bank. We have learned to work with customers to change their situation to match what the banks can do.
 

COMMENTS

  • by Brett 25/10/2012 12:23:17 PM

    Scenario is one thing. Being able to find a lender who is prepared to work with you in mitigating the risks is another. Would really like a deeper understanding on how the client's many weaknesses were explained/justified to a positive outcome of an approval?
    Sounds too vanilla for me to appreciate the effort to accomodate an approval.