As a self-employed person or one who depends on commission and tips, getting a loan is a big challenge. However, this isn’t entirely impossible as long as you have a good credit rating.
To qualify for no doc mortgages, you need to estimate your yearly income but you don’t have to document it. Since it is an unsecured loan, expect higher interest rates and fees. So, how can you get this loan?
Find a Reliable Lender
Not every lender offers this loan due to the high risk involved. You need to find out this aspect from your lender.
Improve Your Credit Rating
The lender uses your credit rating to approve the loan. A lower credit score attracts a high level of interest and fees to compensate for the low credit score. You can improve the rating by:
- Paying off credit card debts and other debts.
- Closing inactive accounts.
- Requesting for changes to accounts that are dragging your credit score down.
Get the Necessary Documentation
Present the necessary documents to the lender. As much it is a no doc mortgage loan, the lender might require some documents from you. So, have your credit score at hand just in case.
Get the Required Down Payment
The nature of the loan requires you to pay a high down payment, which can be as much as 35 percent of the value of the loan. Make sure you have the cash ready.