Did you know it is possible to refinance your mortgage without providing documentation to the mortgage lender regarding your income or assets? It takes stellar credit to get one of these mortgages; however, homeowners that value their privacy or self employed workers that have trouble documenting their income all benefit from no doc mortgage refinancing. Here is what you need to know if you are in the market for a no doc mortgage. Traditional mortgage lenders require significant documentation when approving your mortgage. These mortgage lenders want to know where you work, how long you have worked there, how much you earn, what you have it the bank, and how many debts you have. Mortgage lenders do this to evaluate their risk in lending to you, despite the intrusion to your privacy. Not all homeowners can provide sufficient documentation to satisfy traditional mortgage lenders when refinancing. These homeowners are self-employed or work on a commission basis and have incomes that vary from month to month. Some people are just picky about their privacy and do not want their financial details made public. If either of these situations describes you, a no doc mortgage could be the answer youre looking for. No Doc is not entirely accurate terminology as all mortgage lenders require documentation in one form or another. The advantage of these mortgages is that you only have to disclose what you want; however, this advantage comes at a premium due to increased risk for the mortgage lenders. No Doc mortgages may require higher down payments or more points paid up front to qualify for the loan. There are three types of No Doc Mortgages: No Income, No Asset No Doc Mortgages This type of mortgages is as close to actually No Documentation as you can get. When applying for this type of mortgage you do not have to disclose your income, assets, or employment status. The only thing for your lender to go on when approving your mortgage is your credit score; because of this you will need stellar credit to qualify for this type of no doc mortgage. The interest rate you will qualify for is significantly higher than you would get with a traditional mortgage because the mortgage lender shoulders a great risk in approving your loan. Expect your interest rate to be as much as 3% greater than with a traditional vanilla mortgage. Other types of no doc mortgages include No Asset Mortgages and Stated Income loans. To learn more about no doc mortgage refinancing, and how to avoid common mortgage mistakes, register for a free mortgage guidebook using the links below |
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