Low Doc Loans Explained
Low Doc Loans Explained, if yourself employed or a small business owner it can be tricky to provide the traditional home loan proof of income requirements.
This is in which law docklands can be beneficial to you.
If my freelancer, casual wake up or even a professional investor looking to apply for a home loan you want to stick around to the end of this article.
Because the Lord don't loan could be a game changer if you are struggling with your home loan application.
And also if you are applying for a home loan, lenders want to know that you can repay the loan.
In order to make sure that you can repay that loan and they assess your proof of income.
For employees will receive a salary, it's easy because all you have to do is to give them your payslips and other financial statements.
However, if you are self-employed or running your own business, it may be a little bit difficult to provide all the required documents you need to prove your income statement.
But this doesn't mean you don't qualify to apply for a home loan.
You just won't be able to apply for the traditional sense.
So to fix that you can simply apply for a load low doc loan.
Applying For A Low Doc Loan
When applying for a low doc loan, some of the documentation you need to provide include:
- 6 months of business account statements
- 6 months of personal bank account
- Statements in a clear confirmation of your GST registration.
You also typically need a letter from your accountant to verify some important details.
This should be written on your accountants letterhead with their contact details, qualification and industry membership.
Also keep in mind that the accountant's letter needs to confirm the following:
- Your full legal name
- Your business trading name
- How long your account is been servicing you
- Your gross texting income for the last 3 years
- And any eleven deductions such as interest or deviation.
Because of lake of documentation low doc loans, there is still a slight risk to lenders.
So their low doc loan products are generally a bit more expensive than the standard loans.
This is only to cover for this, so that something to consider about.
If you are unsure if you have enough documentation to apply for a standard home loan check with your mortgage broker to get the right advice for your situation.
A market you broke I can also help you find a reliable lender.
And also products that are most suitable to your personal circumstances.
Conclusion
This is what I need to share with you today and if you still have questions please feel free to ask them in the comment section.
And also please do share this article with your friends and colleagues and that will help me create more content like this.
And also to keep you open you about what's involved in your property purchasing journey.
Otherwise feel free to leave your comments and we'll be happy to help.
That is if you still have questions about low doc loans.