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- My goal is to give you the timely insights
and tips to help you master the game of finance,
and ultimately help you achieve your financial goals.
Hi, my name is Connie from `Prosperity Finance.
How are you doing?
Today I'm going to share with you a very excited news.
We recently helped a couple
successfully purchase their home,
and they are ready to settle now.
When this clients actually looking for buying home,
they approach local banks,
but unfortunately it got declined,
and then they approach another banks
and also had a decline.
And then later they almost give up,
but then they talk to their friends,
and their friends refer them to us.
And after spending time with the client,
getting to know the situation and their goals,
we success successfully managed
getting approval for them.
And they acted very quickly.
So within months from the initial consultation
to purchasing a home,
you know, it's all done and that's it.
So I'm going to share with you in this video
about the reason the bank declined the clients.
And what's the reason,
you know, we had success in the end.
So let's start with the background first.
So this is a young couple in their 20's.
The wife worked for a cafe, part-time,
and her net income is about 16,000 a year,
net annual income.
The husband has a mechanic workshop business.
Now early, before he had this business,
he actually worked in this business as well,
and gain some experience.
Now they looking to buy a home with a budget
about 850K in Oakland,
and currently they living there in the workshop.
So it wasn't kind of my ideal kind of living conditions.
They are looking for a warm home,
and you know, settle down with a family.
So when I review the client's situation,
what I noticed that
the husband company was actually set up 15 years ago,
and then I noticed their financial for the last two years.
And the latest year was actually tenfold of sales
than the previous year.
And I puzzled because for a established business,
you know, with over a decade trading history,
what could cause such rapid growth?
And that's the question,
and that's the concern the bank will have as well.
And that's probably the main reason
they declined the application.
Now, after, you know, talking to the client,
we understand this company,
despite the set up 15 years ago,
but the husband took over the company in late 2018.
So the previous treaty was actually irrelevant.
It was only last two and a half years,
trading was as a result of his management,
and for any new business,
even though they were established,
but different owner,
you know, they all have different skill sets.
They have a different strategy, etc.
And in this case, the husband has done awesome job.
He made some changes to the business,
you know, improved the quality of the service.
So they had a lot of repeated clients,
and they had more marketing.
So as a result,
they had rapid growth,
but they're all legit,
but bank may not get to know the story.
And we can also evidence from
the recent GFC return bank statement.
In fact, despite the lockdown at the moment
Oakland this year,
they're doing even better than the 2021.
So we are very comfortable presenting their case
to the right lender,
and explain the reason that the business has grown so much.
That's the reason I guess the bank declined,
and the reason why we can, you know,
had approval.
The second reason for the decline
is the servicing ability.
Customer are not, you know, short with a deposit.
They are fine,
but the servicing is not so good,
especially considering, you know,
the financials for 2020,
which had a little kind of profit.
So they also have a business loan
that's for purchasing equipment,
and a company vehicle.
The loan size was not big.
It's was probably 20K balance.
But what they're not aware
is that the implication for the home loan
was actually many times.
So 20K kind of business loan,
it can affect over a 100K home loan.
So after knowing they have the cash
to pay off the business loan,
we recommend they pay that off.
So we submit the application,
present the application to the lender
that who is willing to buy into the story,
and happy to use the latest financial results.
And also the customer paid off the business loan
before the application.
That was the success factor.
But besides that,
the customer also did an awesome job.
Firstly, they didn't give up at all.
If they give up,
they may not get onto a property lender anymore
because the price,
it just keeps increasing.
It's very hard to catch up
with their limited deposit.
And secondly, they seek professional advice.
They initially went to the banks themselves,
but later they were, you know, they find us
and we give them the professional advice,
and they really trust us.
They followed over advice,
and they act very quickly.
And they also proactively hunting for property.
The home they purchased was only on the market
when they made a offer.
They acted very quickly and present really good offer
with you know, the right finance date.
It's not too long,
but not too short,
that give them that pressure, you know,
to make a decision.
So I think that's partially that's from all our help
that make the success.
But also, the client also did an awesome job,
and the combination of both sides made success,
and we are so excited for them
because that's what we do.
You know, that's why we do what we do.
You know, seeing we add value to a client
and make impact.
That's, you know, that give us,
you know, so much motivation to keep going,
and help more clients.
So I guess the moral of this story is
if you get declined from the bank,
never give up.
Sometimes you don't know how to wrestling with the banks,
but getting professional advice
is crucial to your success.
I hope you found this video useful.
If yourself or your family, friends
at the moment,
looking for getting a loan,
but not so much success,
probably it's the time to contact us,
and we'll give you obligation free advice,
and see, you know, what we can help.
Now with our minds set.
We never really say, hotly say,
say no to the clients.
Is it always about what you can do
to make that success
and when you can success.
Okay.
So never give up.
Thank you for watching.
I will see you next time.
Bye-bye
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