Have you thought about a low doc home loan? A lot of people don’t know or think about low documentation home loans as they think they’ll qualify for a standard loan. While you might be lucky to qualify for a standard home loan, many won’t. It’s never pleasant to have your home loan application rejected. Fortunately, it is possible to get a home loan when you’re self-employed. So, how to get a home loan while you are self-employed?
Search for an Appropriate Lender
A low doc loan should be approached like a traditional loan. You should find a suitable lender and preferably one that offers competitive rates. It’s important to look at local lenders and find out what loans they have to offer – and whether they’re able to accommodate your needs. It will be the best and simplest way to get an affordable low documentation home loan.
Always Read the Terms of Payment
Every loan comes with repayment terms. It specifies the legalities of the loan and covers a variety of subjects related to payments. While you probably don’t think about it, you should take a few moments to read through these terms. It’s not only important for you to find the best home loan but the most affordable one too. You also know where you stand. That’s why you should carefully read over the payment terms. It’ll allow you to get the best low doc home loan when you’re self-employed.
Compare The Interest Rates and Loan Fees
There are many lenders with many low documentation loans, so it is imperative to take a moment to compare as many lenders and fees as possible. For example, lender A offers a loan at 5.4% interest but has weekly loan fees. Lender B has an interest rate of 6.00% and a one-fee, while lender C has an annual loan fee with an interest rate of 6.2%. In some cases, lender B appears to be the more affordable option as there is a one-off fee. Of course, you should look at many aspects to find the best low doc loan.
Make Sure Your Finances Are in Order
Despite what you might think, a low doc home loan won’t automatically be approved just because you’re self-employed. If you can’t show the means to repay you can kiss goodbye to your loan. So, you must ensure your finances are in order. For example, if you’re looking to buy a property, you’ll need a substantial deposit (such as 20 or 40%). You also need to have at least 6-to-12 months’ worth of savings available in the bank. That shows you have the means and intention to repay the loan.
Get the Best Home Loan for You
Just because you’re self-employed, it doesn’t mean to say you won’t be eligible for a traditional home loan. Fortunately, there are alternatives if your application fails, including a low documentation home loan. So, you should search for lenders that cater to your circumstances, compare fees and read the repayment terms. It’s also important to get your finances in order to get approval for a low doc loan Australia.