Self Employed Home Loans: 3 Important Things
When it comes to putting together an application for a low doc home loan, there are a whole new set of rules that people must meet. Borrowers, as a general rule, must meet, at a minimum, three main requirements for their lender in order to be considered for a mortgage. Therefore, if you’re trying to obtain a low doc home loan, it’s imperative you have the necessary documents to boost your chances of getting approved.
3 Requirements Lenders Want From Potential Low Doc Home Loan Borrowers
1 –Self-Declaration of Your Income
Being self-employed means not going through the usual channels of bosses confirming income. Therefore, you’ll need to certify this for yourself. You want to reassure your lender that you can make all the loan repayments. This is an important part of the application process. On your form, you’ll need to declare all personal income from work along with any other payments you may get.
Once you’ve declared your income, a declaration will state the various financial terms you’ll be agreeing to. This contract is legally binding, which means if you don’t agree with something, don’t sign anything.
2 –Note What Your Employment Status Is
Your bank will want confirmation of your self-employment status, which can be done by giving them your Australian business number (ABN).
3 – Prove Your Credit History
Your credit history will also dictate whether or not you’ll be approved. If you have a clean record, it can work in helping you when you apply for a low doc home loan. It shows lenders that you can make loan repayments and have enough money to meet your obligations.
Your credit record is evidence of other things you’ve been involved with. Therefore, you want to make sure that record is as impeccable as possible. That being said, at Sherlock we can also assist with bad credit low doc home loans. Call or email us to discuss.
The above is by no means an exhaustive list of all that is required to secure low doc loan approval. Contact one of our Lending Specialist today to discuss your options and provide you with a comprehensive assessment and loan quote suited to your individual circumstances.