No doc mortgages are becoming an increasing popular method of financing homes. Homeowners choose no doc mortgages for a variety of reasons; if you value your privacy or have difficulty documenting your income, a no doc mortgage could be right for you. Here is what you need to know about no doc mortgages. Mortgage lenders protect themselves from unnecessary risk by requiring a significant amount of documentation from their borrowers. Your mortgage lender probably wants to know all about your finances: where you got any cash in the bank, how much your salary is, where and how long you have worked, and what debts do you have. Some people value privacy. Scratch that, most people value their privacy. In an age where laptops filled with personal financial information of millions of people routinely go missing, how can you protect yourself? No doc mortgage loans are the answer. A no doc mortgage allows you to keep the details of your finances private. There are several types of no-doc mortgages that offer varying degrees of privacy. This article will focus on the No Income No Asset mortgage (NINA), which is the true, no doc mortgage loan. With a No Income No Asset mortgage you do not need to supply the mortgage lender information regarding employment, assets, or your salary. All the lender needs is a social security number to access your FICO score, and the appraised value of your home. The mortgage lender will base their decision to approve based solely on your credit score, so you can expect to pay a premium interest rate once your mortgage is approved. This interest rate could be as much as 1 to 3 percent higher than a traditional mortgage. In order to qualify for this type of mortgage loan you will need pristine credit. To learn more about your mortgage options, including homeowner mistakes to avoid, register for a free mortgage guidebook: Five Things You Need to Know About Your Mortgage. |
