No documentation is a kind of reduced documentation requirement program the disclosure of income and assets is done during the application of the loan and employment is verified. However, a credit check is done by the mortgage company to verify that the applicant has no negative credit to his account. No doc mortgages generally come under Alt-A classification and bear a higher rate of interest and demand higher down-payment than a normal mortgage.
Under no doc mortgage or no income verification the loan is limited to 70% loan to value. Here, the borrower needs to bring in at least 30% of the loan value as down payment. However, the kind of loan applied for, depends on the borrower's situation. Great Northern Mortgage can help customers with several lenders that will lend no income verification loans (no income check loans) for W2 and self employed borrowers.
In some situations, borrowers may be lured to apply for a no doc mortgage in order to get a mortgage they wouldn't be able to afford otherwise. A borrower should not be tempted by a money lender or mortgage broker to opt for no doc mortgage when other traditional mortgage is fairly obtainable at a lower interest rate. Great Northern Mortgage acts as a broker which helps meet lenders and borrowers without persuading the borrower to opt for any special kind of loan.
For instance, an entrepreneur who is shifting his business from one place to another, and has no income or assets that can be registered or verified can apply for no doc mortgage. Great Northern Mortgage helps and gets its customers no doc mortgage loans and no income verification loans as they have many lenders who can help customers with no check mortgage loans.
If you want your home purchase to be kept as a secret, you might want to opt for no verification or no documentation loan. These kinds of loans enable you to safeguard your financial info without sharing it all with your money lending company.
However, since this type of mortgage loan enables you to ignore some of the paperwork that is generally required for home loans, these loans generally come with greater interest rates and fees. Hence, it is vital to figure out whether or not the camouflage is worth the extra cost.