Understanding Refinancing with Bad Credit – A 10-Minute Guide
Understanding Refinancing with Bad Credit: A 10-Minute Guide Table of Contents Refinancing your home loan can be a powerful financial tool. It allows you to
A property development loan is designed to fund the construction of multiple properties under the same title. When looking at property development loans, it is important to understand the two different types. Knowing which loan is right for your development will save you both money and time spent lodging documents, and get you on your way to building much faster.
For developments of up to four units, funding falls under a residential property loan. For any larger development, a commercial property loan is needed. While looking at development loans, you might be wondering how a one will impact your credit score. Unless you fall behind in repayments or apply for multiple loans through multiple lenders, a development loan may not impact your credit score in a negative way.
Read on below to find out everything you need to know about development loans and your credit score.
Lenders generally consider a credit score of 680 or higher to be good credit, but the higher your credit score is, the more loan options will be available to you. A higher score may also mean that you could be eligible for a more competitive rate, or better loan terms depending on your lender.
There isn’t a set credit score that you need in order to be approved for a development loan, as many factors make up a lender’s mind. However, the higher your credit score, the better chance you may have at being approved without hassle.
Generally, the only way that a loan will negatively impact your credit score is if you cannot meet repayments, or if you put in multiple applications with different lenders at once. Applying for a loan with multiple lenders at one time could jeopardise how you are viewed as future borrower. This is because when you apply for a loan, it is usually recorded on your credit report, regardless of the outcome.
Depending on what type of development loan you choose to apply for, different forms of documentation may be needed. Some lenders may take a tougher approach when considering an application for a development loan, meaning that you might need to provide a range of personal details and extra documentation in addition to the lending standard criteria.
Along with the usual forms of identification such as a drivers’ licence or a passport, you will need to provide your financial details. Documents such as bank statements and details of your assets and liabilities may also be needed.
Depending on your lender, you may need to provide a site plan if you choose to apply for a residential development loan. However, if you choose to apply for a commercial development loan, your lender will most likely request to see site plans as part of your application.
Your lender may also ask for details of the property you want to purchase, such as its location, as well as requesting a professional valuation to determine how much the property is worth.
It’s always worth speaking directly to your lender to find out what exactly will be required, and when to provide it.
When you call us, you will have a free consultation with one of our specialists, and we will tailor-make you a loan. We will negotiate with lenders on your behalf before you are approved.
We have helped countless Australians with both good and bad credit ratings to be funded for their dream development. We understand that lending criteria from other lenders are too strict and can stop you from achieving your goals.
Our finance specialists can help you find the right development loan for your project. Development loans are a complicated topic, but we will find a loan that makes your dream project that much easier.
If you are one of the many Australians finding getting a development loan difficult, Tiger Finance can make the process simple and pain-free. Call our specialist team for your free initial consultation today!
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Our vision is to make it simple and easy for every Australian to get the funding they need to achieve their big life goals.
National Home Loans Group Pty Ltd trading as Tiger Finance | ABN 57 168 971 346
Tiger Finance Credit Representative: Kiara Patricia Halley | Credit Licence: 468465
*Interest Rates: Conditions, fees and charges apply. Interest rates are subject to change and will vary. We cannot guarantee that the interest rate advertised on our website will be the one offered to you. Interest rates offered will be dependant on your situation.
*Consolidating high-interest personal loans and credit cards into a lower-interest home loan may result in significant savings on interest for some consumers. However, this solution may not be suitable or accessible to everyone.
*The approval timeframe is varied. Approval time is subject to change depending on your circumstances or loan type. Processing times may be subject to your lender.