Having problems getting your loan applications approved because you lack some important papers like financial statements or tax return? Low doc loans Melbourne is here to help you.
There are quite a lot of self-employed individuals that can’t provide the necessary documents when applying for a home loan. Although they have a regular income and some assets, producing such papers in a certain period of time can be tough unlike those who are employed in companies.
Even individuals who have had bad credit history can take advantage of low doc loans to apply for a home loan.
Low doc loans (low documentation loans) are designed to help people who can’t qualify for a traditional home loan. Although borrowers will still need to go through the normal application process, they are not going to be required to submit papers like proof of income, assets and liabilities.
This offers people who can’t be eligible for traditional loans the opportunity to have a place they can call their own given that they get help from the people who know best. Low doc loans Melbourne providers can help anyone transform their lifelong dream of becoming a homeowner a reality.
There are 3 types of low doc loans:
Account statement type loan – this requires more proof of income prior to approval
Self-income loan – borrowers only need to present a statement of income to qualify for the loan. No verification is necessary.
Asset lend loan – borrowers will not be required to present a declaration of income since the loan is secured by the value of the assets.
There is just one downside for such loans: the borrower may pay higher interest rates.
Low doc loans can be considered as heaven’s gift for borrowers who are finding it difficult to produce necessary papers to prove their eligibility. You can basically get a home loan approved without presenting anything. However, since this puts the lender at a lot of risk, lenders may make up for it by charging a higher interest rate or lenders insurance.
Some would think that paying more is a disadvantage, but if one thinks about it carefully, such loans allow for very easy approval. The extra costs would definitely be worth every cent paid.
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