What Are Low Doc Loans?
If you are a homeowner and you have a fairly decent credit score, you may be able to qualify for low doc loans.
These loans are specifically targeted at borrowers who may not be approved for prime rates by traditional lenders due to their less than perfect credit scores or lack of required documentation.
If you need a loan to consolidate all of your debts or if you need emergency cash to make home improvements, these loans can help you through the difficult times.
How to apply for a low doc loan?
Basically, the only thing that a low doc loan requires of you is to provide some basic information to the lender so they can review your application.
This includes your personal information, employment history, current residence address, and the details of any other outstanding debts you may have.
Once the lender has this information they will determine if you qualify for the loan. They will then give you a form to sign and provide documentation to verify your identity and employment.
How long do you have to wait before you can receive a low doc loan for your home?
Usually it takes a couple weeks before you can apply for one of these loans. Even though that seems like a long time to wait, it really isn’t in comparison.
You can apply for one as soon as you get back from your job. You may not even have to go through a credit check to be approved, which makes these loans very convenient for people with bad credit scores.
Once you are approved for a certain low doc loan, the loan officer will deposit the money into your checking account. This means that you will not have to pay interest on the loan until the loan is closed out. The entire process usually takes less than a month to complete.
can you get a low doc loan with bad credit?
Most of the time, when you apply for a home equity loan you will be required to provide two years of tax returns as well as three years of social security numbers.
Even if you have to provide additional information, the lender should still approve the loan.
Lenders are protecting themselves by having these documents available so they don’t end up having to pay out large sums of money in a default.
With low doc loans, people who cannot qualify for a regular loan because of bad credit history, can apply for one of these types of loans. This means that they do not have to wait for months on end in order to get the money they need.
Low doc loans don’t require you to submit additional documentation after you application has been approved.
This means that your credit score will not affect the approval of the loan. People who already have poor credit histories can use this type of loan to improve their credit scores.
How do low doc loans work?
When you apply for a loan and are approved, you will sign an agreement that states that you understand the terms and conditions of the loan you are agreeing to accept.
This means that you are aware of all of the fees, interests, and other costs associated with the loan.
You don’t have to worry about signing any documents you aren’t completely comfortable with because the lender will always have a copy of it.
applying for a loan online
If you are unable to apply for a loan through a traditional lender because of past financial problems, then you can always apply online.
There are a variety of websites that allow you to apply for a loan from the comfort of your own home. When you apply for a loan online, all you have to do is provide the lender with some basic information. This includes your name and address.
With a loan, you can be guaranteed to get the money you need within a few hours. These types of loans have been designed for individuals who need emergency cash, but do not have the time to complete the requirements needed to qualify for a traditional loan.
In order to apply for these types of loans, you must fill out an online application. Once you fill out the application, it will be reviewed by a loan officer to determine if you are eligible.
These type of loans are perfect for people who need to get cash fast, but do not have the time to complete the application process required to secure traditional financing.
If you do find yourself in need of money right away, then you should definitely consider applying for a low doc loan.
You will be able to save money on interest and be sure that the funds arrive faster than if you used a regular loan!