There are different options available if you plan to refinance your current mortgage. Now, why would homeowners want to refinance their mortgage? There are actually many reasons for that, and the most common are: to receive cash out at closing, eliminate private mortgage insurance, and obtain a fixed rate.
Refinancing a home loan involves getting a new mortgage and thus, you are required to present the mortgage company with various documentations. However, if you prefer privacy, there are also ways to obtain a loan with minimal documents.
If you have good credit, you may be able to get a no doc refinance loan. As each lender is different, some lenders are willing to grant a refinance with no documentations, whereas other lenders are not as eager to take a chance. The process of attaining a no doc loan is pretty simple. With these loan applications, the homeowner must provide their social security number and loan amount. The lender will then base loan approval solely on credit scores. In order to obtain a no doc loan, you must have a very high credit score.
Low document home mortgage loans differ from no document loans. With low document loans, it requires the applicant to state income and employment history. The applicant may also supply recent paycheck stubs or income tax returns for the past two years. These loan programs are advantageous for self-employed or contract employees. Moreover, individuals who also receive cash payments can get a low document refinance loan.
On the other hand, individuals who prefer to keep their privacy, and of course, who have good credit scores, can opt for a no document refinance loan. These individuals would not want to give out detailed information regarding their finances, income, and employment.
Now, why are people with very high credit scores make ideal candidates for a no doc loan? While lenders may not be really happy approving loans with less or no documentations, they find people with good credit reports unlikely to tarnish their perfect records.
When you do opt for a no doc or low doc home mortgage loans, just be prepared to pay a higher interest rate on your home loan. Of course, a higher interest rate may be well worth it if it means getting some privacy and faster processing.
But do take note that if your reason for refinancing your home mortgage loans is to get a lower rate, then a no doc would not be the best deal. To be safe, get a quote from a lender and have the no doc refinance rate compared with your current interest rate before refinancing. - 16759
Refinancing a home loan involves getting a new mortgage and thus, you are required to present the mortgage company with various documentations. However, if you prefer privacy, there are also ways to obtain a loan with minimal documents.
If you have good credit, you may be able to get a no doc refinance loan. As each lender is different, some lenders are willing to grant a refinance with no documentations, whereas other lenders are not as eager to take a chance. The process of attaining a no doc loan is pretty simple. With these loan applications, the homeowner must provide their social security number and loan amount. The lender will then base loan approval solely on credit scores. In order to obtain a no doc loan, you must have a very high credit score.
Low document home mortgage loans differ from no document loans. With low document loans, it requires the applicant to state income and employment history. The applicant may also supply recent paycheck stubs or income tax returns for the past two years. These loan programs are advantageous for self-employed or contract employees. Moreover, individuals who also receive cash payments can get a low document refinance loan.
On the other hand, individuals who prefer to keep their privacy, and of course, who have good credit scores, can opt for a no document refinance loan. These individuals would not want to give out detailed information regarding their finances, income, and employment.
Now, why are people with very high credit scores make ideal candidates for a no doc loan? While lenders may not be really happy approving loans with less or no documentations, they find people with good credit reports unlikely to tarnish their perfect records.
When you do opt for a no doc or low doc home mortgage loans, just be prepared to pay a higher interest rate on your home loan. Of course, a higher interest rate may be well worth it if it means getting some privacy and faster processing.
But do take note that if your reason for refinancing your home mortgage loans is to get a lower rate, then a no doc would not be the best deal. To be safe, get a quote from a lender and have the no doc refinance rate compared with your current interest rate before refinancing. - 16759
