How to acquire a Home Loan Without Adequate Financial Statements?
Decoding Low Doc Home Loans
Low doc home loans (also known as low documentation loans) are a very flexible lending solution for self-employed people, character investors, people who do not work regular jobs or for new families who have just moved to the country. This loan kind has taken off in recent years to assist people who have been rejected by mainstream lenders/credit providers.
Suitability of the Loan Package
Low doc home loans have allowed thousands of home buyers to access a home loan. This loan is specifically appropriate for people who have assets in addition as income, but cannot provide adequate financial statement or tax return as proven evidence of income. Here is a list of people who are appropriate for the loan:
>> Self-employed people who may only pay themselves a standard wage and run their business in a way that method they fall into a lower tax bracket to avoid income tax
>> character investors who may have varied income from month to month and from year to year
>> Contractors and seasoned workers who don’t work regular jobs, and
>> New families who have just moved to the country and may not have pay-slips or tax returns from the work they have been doing since they arrived
Income Verification course of action
A low doc home loan enables you to self-certify your income, where you state your income (what you make) on a “Declaration” document and, the lender/credit provider will NOT verify your income by using masses of documentation otherwise required such as tax returns, BAS statements and more.
The conditions for low doc home loans are more restrictive than standard residential loans as they provide a higher level of risk to the lender/credit provider, for example:
>> You cannot borrow more than 80% of the value of the security character, and
>> Any low doc home loan with a loan-to-value ratio (LVR) higher than 60% will incur a lenders mortgage insurance (LMI) premium
Factors Considered by Lenders/Credit Providers when calculating the Interest Rate for Low Doc Home Loans
Here is a list of factors that lenders/credit providers consider when calculating the interest rates:
>> at the minimum 20% place (you do not have to show evidence of savings)
>> character of and the security character kind
>> Client credit history
>> Loan size amount
>> Aggregate of total exposure to the lender/credit provider
>> If self-employed, the period the client has been in business
>> Age of borrowers, and
>> The purpose of seeking finance
Seek Expert and specialized Advice
Before you start the time of action of obtaining loans on your own, you should first seek the expert assistance of a professionally qualified finance broker who specialises in low doc home loans. Having a specialist finance broker on your side will save you lots of time and heartache. The finance broker will negotiate on your behalf with specialised lenders/credit providers to obtain your eligibility for the loan not to mention get you the best deal.
Truly, having a specialist finance broker on your side will make getting a low doc home loan simple for you. The expert finance broker will turn your dream of home ownership into reality. So if you are looking for a low doc loan, don’t forget to use the sets of a professionally qualified and expert finance broker.