Getting a low-doc loan is one of the best ways to lay hands on a stream of funds with the least amount of verification. With so many mortgage finance options, you’ll require filling out a mountain of paperwork along with verifying different pieces of information.
Why to go for low-doc business finance when you have a traditional one, too?
For example, whenever you’ve requested for a traditional, your application will include your employment, your income and everything related to it. Nevertheless, with a low-doc loan, you’ll be able to bypass most of these steps; and, as a result, you’ll lay hands on the funds way quicker than the time taken by traditional finance.
For whom does the low-doc loan suit?
This loan type is apt for all those self-employed borrowers who’re having a tough time in getting their verification works done. (Basically, the self-employed don’t get qualified for many traditional loans because they don’t meet the most important criterion-that is, they don’t have a fixed flow of income.)
However, with a low-doc finance option at your disposal, the lenders will analyse your credit history; and then according to the analysis, they’ll take your word on repayment. So the bottom line is that if you want to get such finance option, you’ll have to have a good credit history.
Things, however, can turn tougher and more complicated for you if you aren’t having a near-to-perfect credit score. So here are a couple of tips that, when followed, can let you qualify for a low-doc loan even if you’re having a marred credit history.
- Getting a cosigner
When you’ve got a bad credit history, then the finest way get your application for the low-doc loan approved is by having a cosigner by your side. A cosigner can really help in improving your loan profile. By a cosigner, we mean that there’s someone who can sign the finance-related paperwork along with you.
A cosigner can seriously improve your chances of getting a loan approved because in such cases, the lender looks at the credit scores that belong to you as well as the cosigner. So always try getting a cosigner who’s having a perfect credit score.
By having a cosigner, the lender will even look at your and your cosigner’s credit scores cumulatively. So if you have a cosigner who’s got a near-to-perfect credit score, then lenders will be willing to give you the loan as they’ll know that they’re supplying funds to someone (your cosigner, that is) who’s good and trustworthy with money management.
- Leveraging the subprime lending market
Such markets are designed for all those who’ve got bad credit histories. Such subprime lenders do business by lending to only those self-employed borrowers who’re having a bad credit score. So if you’re in dire need for a low-doc loan and you’ve got a bad credit history as well, this is the place to go to.
Lots of quality mortgage brokers have access to leading subprime mortgage lending sources. For this reason, if you’re working with lenders who believe that your credit history/score is bad, they can easily present you any of the subprime mortgage options that suit your needs.
That’s it for now, ladies and gents. We really wish that this post has given you the scoop on the ways of getting such a type of finances despite having a bad credit history. For more of such insightful pieces, we’ll recommend you to bookmark this page. Cheers.