When it comes to loans, you have many options. You can get traditional unsecured loans, home equity loans, home equity lines of credits, 125 second mortgages, second mortgages and many others. One particular loan that is popular for self-employed individuals is no doc mortgages loans. These loans are very popular with people because you don’t have to prove your income in the loan application. You can simply state your income when you are applying for the low documentation loan.
The benefit of being able to state your income in the loan application is that it allows people who are self-employed and contracted to get loans approved. One thing that lenders look at when approving low doc loans is the borrower’s credit rating. The better your credit rating is, the less documentation you will have to show for the loans. Lenders use the borrower’s credit as the determining factor of whether or not they will get loan approval. You need to be sure that you haven’t had any missed payments or defaults in your previous credit history.
You should also be aware that many creditors look at the borrower’s debt to income ratio when they are assessing the loans. You need to ensure your debt to income ratio is below 45% when you are applying for these loans. Lenders do not want to lend money to people who are overextended financially because it presents are greater risk that they will default.
No doc mortgage loans are very useful to the people that qualify for the loans. If you are interested in applying for a low documentation loan then you should start your search online. Do a thorough search of the different lenders that are available and you will get your loan approved.