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No DOC Loan

Are you in need of finance but have problems in arranging or your income proof and other employment documents. If this is the case then you can apply for the no doc loans. The no doc loan is also called as the stated income loans. With the help of these loans people who have a good credit standing but do not have a regular source of income. In this article we will be talking about the no doc loans and how to apply for them and get them approved easily.

The no doc loan is usually meant for homeowners that have problems in arranging for proper documentation for their income. However to qualify for these loans you are required to have a good credit. Another aspect of these loans is that you would have to compromise on the interest rate and pay a higher interest rate because the lender takes a risk in not checking your income documents and assuming that you would be able to payback the loan on time. The lender takes more risk with these loans as compared to the conventional mortgages and hence charges a higher interest rate.

If you are willing to apply for these loans then you are required to do some constructive research. You are required to search for the best deal that would be available for you. When you apply for the no doc loan you would just have to give information about where are you getting your income from? The lender would typically conduct a credit check on your credit history. Usually lenders that give out the no doc loans require the borrower to have a credit score of approximately 680. But with the increasing competition in the market the lenders can even give concessions on the eligible score.

If you are self employed or are working on commission basis then your two years bank statements would be enough to prove your source of income. Apart from this you would also have to provide the details of your income tax returns for the past 2 years. Shopping around for the right kind of no doc loan can help you save a lot of money. Even a slight change in the interest rate can help you save a lot of money. When selecting the no doc loan you should compare the total cost of the loan. Besides this you should also compare the prepayment penalties of the loan.

When shopping for the no doc loan you should be smart. Make sure that you do not allow the lender to access your credit report unless you are ready to apply for the loan. This is advised because if too many credit enquires are made in a short period of time then it can result in damaging your credit score. Even before you start looking for the no doc loan you should look into your credit report. It is very important that you assess your credit score before applying for no doc loans. This is suggested because the no doc loans are given out to people with a good credit score.

Apart from the conventional lenders there are a number of online lenders that would provide no doc loans. It is advised that you look out for the online options because these lenders would be able to provide you with better options at times. The online lenders provide a good option and also would give people with an option of applying for the loan easily. Apart from the feasibility of applying for the loan easily the online loans are processes fast as compared to the conventional loans.

Before taking the no doc loan it is advised that the borrower read the terms of the loan carefully. There are a number of lenders that would readily offer no doc loan. You are just required to look for the right option for yourself. When choosing the lender for the no doc loan it should be taken care that you are getting the best deal. Hence it is advised that you compare the different offers that are available for you and then take a decision on which would be the best option.  

The fees and the terms and conditions would vary from one lender to another hence it is important that the borrower applies for the no doc loan after comparing the offers from various lenders. It is advised that the refinance home mortgage loans be spread over a long period so that the monthly payments are low. However it should be understood that when the payments are lower but spread over a long time you would have to pay more towards the interest rate on the loan. Hence it is advised that you look out for all the options and then apply for the no doc loan.

When comparing the loan quotes from different lenders it is advised that the borrower compares the APR (Annual Percentage Rate) rather than just comparing the interest rates. The APR of the loan would give you the total cost of the loan on an annual basis. The APR is inclusive of the interest rates and the fees. However, even when comparing the APR you should ask the lender about the fees that have been included in the APR. The lenders calculate the APR differently. According to the Truth in Lending the lender is required to reveal the APR to the borrower before he signs up for the loan. Hence it is advised that you take the no doc loan after much consideration. 

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