No Doc Mortgage Refinancing - Is It A Good Decision?
Are you considering a mortgage refinance and your broker is telling you that you
need to do a no doc mortgage refinance loan? This can be a very scary thing because no doc mortgage refinancing is not meant for everybody. Read further to see if it is right for you.If you are self employed, then doing a no doc loan might be a good thing. A no doc loan is one that does not require you to prove income, employment, or much of anything else. Sometimes it can be hard for a self employed individual to get a refinance loan and going the no doc route can help.
If you are a tipped employee or independent contractor, then a no doc mortgage refinance might be good for you as well. Those that don't claim all of their income on their taxes can benefit from a no doc loan because they will be able to get a loan without proving how much they really make each month.
If you have worked for the same company or in the same field for 2 years or longer, then you should never even start to consider a no doc loan. When a mortgage broker wants someone in this situation to do a no doc loan it is because you don't qualify for a traditional loan. This also means you probably cannot afford the loan
Avoid this situation at all costs. When someone like this gets into no doc mortgage refinancing they either end up broke, filing for bankruptcy, or foreclosing on their home. Do not allow a mortgage broker to talk you into such a loan.
No Doc Mortgage Refinancing - Is It A Good Decision?
By: Gressly Stevens