Think you’re ready to have your first home? You might need an advice from your local financial brokerage firm. You’ll probably hear them discussing about the low doc home loans and you are not sure if this option is perfect for you. Because your personal circumstances will have a big role when choosing a loan that is best for you, meeting with the loan experts first off, could save you from financial ruins in the future. So do not underestimate what you can learn from consulting one before diving into your new plan.
To explain simply, low doc home loans are mortgage or home loans in which the borrower are not required to have their income verified. by the lender. They do not have to provide more information compared to a normal home loan. This type of loan is ideal for self-employed, ex-bankrupts, investors and independent contractors as they usually have trouble showing the supporting documents to prove that they have a regular income. Also, these people’s income fluctuate every week or month.
So what are the requirements that needs to be accomplished by the borrowers? What are the important things to take note?
- They should be able to provide full evidence of having a good credit history.
- For security purposes, borrowers need to offer 20% equity, the minimum. Some lenders might cut a percentage more than that. It is expected since this is a high-risk type of loan.
- A proof that you have been through a registered ABN process is also required.
- You have to declare your income in an application form given to you. A statement on how you are able to pay back the loan will also be required of you. They call it self-certification procedure.
- Some lenders may require a mortgage insurance or even higher deposits.
Talk to a mortgage expert today and discover how you can benefit from a no doc mortgage. These people have an in-depth knowledge when it comes to loan issues. Getting a mortgage is no easy thing. It is one of the biggest financial decision you have to make. The risk of not getting an advice could be scary later on. Sure you can turn down every advice you think that doesn’t suit you but getting ideas from the experts could help you speed up the process with the lender or the bank. Later on, if everything did not turn out successfully, you can file a complaint of financial mis-selling, rather than taking all the blame on yourself your whole life.