Low documentation or low doc home loans are helpful when you don’t have enough documents or if there is a lack of up to date financials. But there are other points that you need to know about this type of loan as well if you indeed want to apply. So, if you are in Bankstown and planning to build a home for yourself, this is the discussion you need to follow.
1) Documents are Required
Many people confuse low doc home loans in Bankstown with no doc loans. But that is not the case in the real world scenario.
‘Low doc’ home loans means that a few documents will still be required if you want to apply for this loan. But the only difference is that you don’t need to produce everything that you would have to otherwise when it comes to a normal loan.
To apply for a low doc loan, you will require your income declaration signed by an accountant, the ABN if you have a business, GST registration proof, Business Activity Statements, your bank statement, financial statements with old tax returns.
2) Lenders will Assess Your Financial Background Thoroughly
When you apply for the low doc home loan, the lenders will thoroughly assess your financial background such as repayment of history of debts, credit file etc. Then, after assessing them, if they find that you will be able to repay the loan amount, they will provide you with what you have asked for. However, keep in mind that there are several factors based on which the lenders will decide whether they will actually be providing you with what you have asked. But if your credit rating is good, you might get a loan. Nevertheless, you can hire a mortgage broking expert in Bankstown to handle the entire process.
3) Self-Employment Does Not Mean That You Are Eligible For Low Doc Loan
Even though you are self-employed, it does not mean that you will get a low-doc home loan. This is because you need to have the documents and a good financial background which we have mentioned already if you have to be eligible. But not having any of these will decrease or might make the chance of your loan getting approved to nil. So, consider these before you apply for the same.
4) Higher Interest Rates
If you go for the low doc loan, you will have to pay a higher interest rate. So, you might have to think carefully if you want to apply for this type of loan. Otherwise, a good idea will be to talk to a finance broking expert in Bankstown who can assess your needs and recommend you a loan that can be manageable. However, the rates of interest in low doc loans vary from lender to lender.
5) It Might Take Some Time to Find The Lender
Since low doc loans have now become scarce due to the increased risks on the part of the lender, finding institutions or individuals offering the same can be time taking. For this reason, you should seek the assistance of a home loan expert.
Now that you have gained the idea about the loan, you can make the best decisions or talk to a professional for the same.
Consult Your Friendly Home Loan Expert Today
Magma Finance houses the best secured home loan experts in Bankstown to meet your needs. So, to talk to our professionals, call us now or send an email to solve your queries.