How to Qualify For A No Doc Mortgage
Maintain a good credit rating to qualify a no doc mortgage. This type of home financing is strictly based on your credit score. Most individuals who qualify for a no doc loan have great to excellent credit reporting scores.
Close inactive credit card accounts that you do not use, keep spending on active cards to a minimum, and pay or keep existing balances low. Lenders will be looking at your spending habits and how reliable you have been when making your monthly payments to qualify for a no doc mortgage.
Save up money for a larger down payment. Start setting aside more money a month to qualify for a no doc mortgage. This type of financing generally requires a higher down payment compared to the standard type of home endowment. Check with lenders in your area to see what the normal percentage is required for a down payment on a no doc mortgage for their services.
Disclose other asset information to qualify for a no doc mortgage. Consider giving your asset finance information such as bonds, land property, collector cars, and stocks because you may qualify for a lower interest rate or down payment. Most no doc loans typically carry a 1 to 2 % higher interest rate than the standard home mortgage. Some lenders may even charge a higher interest rate for no doc mortgages. Disclosing such information may help get a no doc mortgage.