4 Tips About No Documentation Mortgage Loans - part 2

by Ben Afzal

Many lenders want to check on your employment. This means your current status, as well as your employment over the last two years. If there are employment gaps you may need to explain them. Lenders like to see people who are in the same line of work for a while. A sudden increase in compensation recently may be discounted by a lender. They like to see stability in earnings. If your compensation spikes in some months because of commissions, lenders will treat that as happening occasionally but not routinely and will view your income that way.

Lenders can verify your employment in several ways. Often times this can be mentioned on your credit report. They may require a written verification from your employer about your title, compensation, job term, etc. Some lenders may only do a verbal verification of your employment. Make sure the person who the lender calls to verbally verify your job knows what they are doing. Sometimes they get your title wrong, start dates, etc.

There are lenders who also require no employment documentation.

Things Lender Will Still Check

Many lenders will still require a credit report. If you have always paid your mortgage on time that will be regarded as a strong plus. Generally strong credit is also looked on favorably.

You are much more likely to be able to get a "No Doc" loan if you have higher credit.

Often times these loans can require mixed documentation. They may not require income documentation but require asset documentation or job verification.

There are loans where almost nothing is verified. These are usually loans where people have a tremendous amount of equity in their property and as such the lender's risk is a lot lower.

It is still possible to get no documentation loans for many people. This can include people who cannot document income properly or don't want to share their private financial information.

Copyright (c) Ben Afzal

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