Get a Low-Doc Loan Even When You Have a Bad Credit Score

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.

The tips

  • 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.

Mortgage Refinance

Smart Ways to Advertise Mortgage Loans on the Internet and at Websites

We see all types of internet mortgage ads on web pages promoting mortgage products and services. The ads will come from mortgage bankers, mortgage brokers, big Banks, and lead aggregators who sell the incoming lead to their lead buying customers. What formats do these ads get displayed in? How many different types of Internet Ads […]

Read More
Mortgage Refinance

Understanding Different Options for Home Equity Conversion Mortgages

Seniors, 65 years or older, who own their home may be able to get the equity out of their residence without selling it. Home Equity Conversion Mortgages, or HECM, allows you to tap into what your home is worth and still be able to live in the residence. There are a couple of different types […]

Read More
Mortgage Refinance

5 Tips to Follow While Mortgaging a Home

The interest rates on all mortgages were around 4% throughout the entirety of 2015 but this rate is expected to reach the 4.5 mark. Thus in order to save a significant amount of money with respect to interest rates, there is some proper protocol that has to be followed. For this particular purpose we have […]

Read More