A debt instrument secured by a collateral of specified property that the borrower is compelled to pay back with a prearranged sets of payments is often referred to as mortgage. It is a legal agreement made by the bank or a lender that lends money at interest in exchange for taking the title of the debtor’s property. The condition laid down in the agreement makes the title of the debtors property void until the repayment of debt. No doc mortgage is that type of loan that does not require the borrowers to provide for any documentation supporting their income to lenders. This type of loans does not require any supportive evidence of the borrower’s income but just a declaration confirming that the borrower can afford the repayment proposed in the document.
No doc mortgages by Lenders is not often practiced in today’s world as they violate the requirements that the lenders should verify the borrower’s capability to repay the loan before approving the mortgage. The main source of no document loans is private property. Usually non conforming lenders focus on the low risk of no document loans offering attractive rates of interest for tenure of six to twelve months and accordingly luring customers to gain profits.
For those who are self employed can obtain no documentation mortgages merely by just providing profit and loss statement, latest bank statements, credit scores and copies of the income tax returns. Such types of mortgage are best for surviving spouse or individuals approaching retirement. No documentation refinance is beneficial for borrowers having difficulty in providing documents for their income due to various circumstances but have the urgency to borrow. Know more about no closing cost refinance..!
Mortgage lenders have certain ways of reviewing the applications. An automated underwriting system which automatically approves or denies loans based on particular criteria’s inclusive of credit score, income and debt. Mortgage loans based on credit scores are usually higher for people with bad credit however there are some lenders willing to provide loans to people with low score. Refinance mortgage with bad credit 2016 is made possible by lenders provided the buyers provide proofs of income and some money to back up to improve the scores. For further information on no doc mortgage finance, one can log on to MORTGAGEREFINANC101.COM
No Doc Mortgage Refinance - Know About No Documentation Mortgages 