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No Doc Mortgage Loans

Updated on July 10, 2010

Applying for No Doc Mortgage Loans

If you want apply for a mortgage loan with no necessary documentation to prove your income, and assets or whether if you are employed or not, No Doc Mortgage Loans is always an open option for you. Customarily, if you are applying for self employed loans, you will be required to submit proper documents that will verify your state of income if you are applying for a loan. You will be asked to submit the following examples:

  • most recent pay stub
  • copies of your tax returns for the past 2 years
  • 1099s forms
  • certificate of employment

Lending companies are always playing it safe when it comes to approving remortgage loans. With all these caution displayed, there are still lending companies that offer you No Doc Mortgage Loans to give you more options on your remortgage loans.

Pertinent documents are used to validate the authenticity of the state of income you have declared on your loan application. Having a predefined amount of income on a regular basis is used as one of the top indicators on whether you are qualified to apply and have approval on a mortgage loan. Also, your monthly income will determine the amount of mortgage you can avail of. If your potential monthly payment is not ideal for your monthly income, you will be given a much reasonable amount that will be more manageable with your monthly financial capability.

Employment Verification

No document loans are usually used as an option by a borrower aiming to apply for loans for the unemployed and some use it for self employed remortgage loans. This type of loan serves as an advantage to unemployed and self-employed borrowers. They are given the ability to declare monthly revenue or an annual income without the requirement to prove it.

With a no employment verification type of loan, lenders will not check your current employment status including the last two years of it. The traditional process of mortgage loan applications, you will be oblige to entail your existing employment status and the gaps that you may have within the two years of your employment record if there’s any. Lenders consider it as a big plus factor if a borrower is working for the same business or same industry for a period of time. Having financial stability is a very big factor that will determine the outcome of your loan application.

Checking Your Credit Standing

Lending companies will still do their job and check standard factors that need verification. Whether you are applying for a No Doc Mortgage Loan or not, lenders will always check your credit standing. Most lending companies seek the necessity of a credit report. This will reflect if you are a good payer or not. If you are a borrower who makes it a point to pay remortgage fees for your monthly payment on a timely manner that will surely earn you a positive note on your loan application.

Most lending companies favor those with excellent credit standing which is not a very easy thing to do for most borrowers. A good credit standing give you a bigger possibility in obtaining a much higher credit. With documents or with no documents you will be applying for a loan which needs to be paid under all considered circumstances.


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