By Chris Channing
A no income verification mortgage is a way for the self employed to find a mortgage without verifying income. It sounds like an easy remedy, but actually obtaining one is going to be a job in itself. There are steps you can make to make qualifying much easier- but it will take some work.
Without hesitation, the first thing the loan officer is going to do when reviewing your qualification is to look at your credit score, or at least ask you if you know what it is. The credit rating you possess is largely going to determine whether or not you will be able to get the loan right off. Lenders will demand a rating that is average or better, since the risk they observe is going to be fairly high- certainly much more than normal.
Whereas normal mortgage loans might require as little as 3% down for qualifying and getting approved, a mortgage loan where income can’t be verified will require as much as 10% or even as high as 20% and higher. The larger the down payment, the better of a chance you have in getting approved.
No-verification mortgage loans will not have a friendly interest rate. Although you would think it would be outrageous, lenders won’t charge something that is impossible to pay- they want you to be able to pay them, after all. Do expect to pay more, however, and do keep in mind that if you stay current on payments your credit rating will rise, and you could qualify for discounts.
When applying for the loan, be sure to accurately state your income. If needed, state less than you actually think you make. That way you won’t have a problem repaying the loan in the future. Lenders are always wary of offering such loans to someone who says they make more money than they actually make- it’s one of the major reasons loans are defaulted. Be realistic and don’t lie to the loan officer or you’ll soon be out of a home.
The amount of preparations needed to get qualified for a no-verification mortgage loan is going to be stressing. If you can in any way prove your income, take all steps necessary to do so. Lenders are cautious in approving a loan that doesn’t have stable income receipts, and even with all the qualifications you might get denied just because of the current state of the economy.
There are many lenders out there to choose from, but know that many of them are not open to the idea of a no-income verification mortgage loan. You will have to go through song and dance to get one, so it’s possible if you have no other options. – 23596
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Learn more on Non Status Mortgages UK and Non Status Remortgages.