Applying for No Doc Home Loans: 3 Useful Tips

Finding no doc home loans may be difficult to do. Lenders tend to require proof of certain financial and other information necessary to verify an individual's financial status and provide a loan that is based on the borrower's situation. A no doc loan is one that eliminates a lot of the verification requirements such as proof of income, credit rating or the existence of discernible assets.

Types of No Doc Loan Lenders

Some lenders provide no doc loans for some limited purchases such as down payments or for the purchase of a home in certain areas. These loans may be based on other criteria as determined by the lender, which could include the prior relationship between the borrower and the lender. Applying for a no doc home loan with a lender that offers these products requires some work on the part of the borrower to find a good loan provider.

Tip 1: Find a Reputable Lender

Making an application should involve finding a reputable lender that is in the no doc home loan provider. These lenders should provide all sorts of home loan products and provide a process that is coherent and based on a criterion that is reasonable for the borrower. A no doc lender should be an established lending institution and base it's lending on the sound financial underwriting procedures.

Tip 2: Have Back-up Information

As a borrower, you should be prepared when necessary to provide any back up information that may be required during the loan underwriting process. Although the loan may be advertised as a no doc loan, there is still information that is required on the loan application. This includes income information, assets and liabilities, a net worth statement and information on accounts held with the lender. This information may not require that you provide copies of bank statements or tax returns but may be subject to verification.

Tip 3: Be Honest

A borrower that applies for a no doc loan should be honest about all of the information that is provided. To do otherwise may constitute fraud and subject the borrower to criminal prosecution when uncovered. This is certainly not an outcome that any borrower wants to face. To avoid what may constitute fraud or other criminal activity, the borrower should be able to verify any information put in the application when necessary.

The existence of no doc loans is scarce but may be possible to find. Approaching a no doc loan in much the same manner as you would when providing detailed financial information will save you problems in the future, if the lending institution challenges any statements or representations made on the application later. This will help you avoid any fees or criminal liable that may arise from providing fraudulent information.