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Did you know the average household in Australia has over $200,000 worth of debt? Unfortunately, it’s becoming increasingly difficult to own a home in Australia. One of the most significant reasons is having difficulty in proving income. The good news is that you can leverage stated income loans to help secure financing. Let’s take a look at low doc loans and how they can help.

So, What Is a Low Doc Loan?

Also known as a self-employed loan, It’s a type of mortgage loan where the borrower does not have to prove their income.

This can be beneficial for those who are self-employed, freelancers, and people with varied incomes. The lender typically requires only basic documentation such as bank statements, tax returns, and credit history.

This is a great opportunity to convey that you are a reliable borrower even though you don’t have a traditional occupation.

What Benefits Does It Provide?

The main benefit of low doc loans is that they provide an opportunity for those who may not be able to provide traditional proof of income. For example, if you are self-employed, you may have difficulty providing two years of tax returns.

This is where a stated income loan can help. Another benefit is that the application process is simpler and faster than with other types of mortgage loans.

This can make it easier to get approved and get a home loan. In contrast, you may have a much more difficult time getting approved for a traditional mortgage. Even a slight delay could cause you to miss opportunities when searching for a home.

What Information Do I Need to Provide?

To apply for a low doc loan, you’ll need to provide basic information such as your name and contact information.

You will also need a good credit rating. and a valutaion appraisal done on the property you’re looking to purchase or refinance. You will also need an ABN.

How Do Low Doc Loans Compare to Traditional Mortgages?

The main difference between low doc loans and traditional mortgages is that traditional mortgages require more detailed documentation including tax returns, bank statements, and other documents to prove that you can make the loan payments.

With a low doc home loan, the lender will typically just need basic documents such as recent pay stubs or bank statements. This makes it easier for those who may not be able to provide the documents required for a traditional mortgage.

If I Don’t Get Approved, Can I Reapply?

Yes, you can always reapply for a seld employed home loan.

If your application is denied, you should take the time to review and make sure that all of your documents are in order. You may also want to talk to other lenders and see if they have more lenient requirements. It’s important to remember not to get discouraged if your initial application is denied.

With patience and research, you can eventually find a lender who will work with you to get approved for the loan.

How Do I Find the Right Lender For Me?

Not all lenders are created equal. So, you need to be serious about finding the one who’s best for you.

Interestingly, many people overlook how important it is to check the lender’s past reputation. You will gain insight into what you can expect by checking what previous customers have had to say.

Take note of any consistencies in the reviews, good or bad. Additionally, you should only work with someone who has significant experience in the industry.

It’s a risky maneuver to work with someone who is not established. Although you are guaranteed to have poor results by working with someone experienced, the odds won’t be in your favor.

A great way to look into this is by booking a consultation.

As you might guess, you should prioritize companies that work with people like you. It’s crucial to avoid hiring the wrong person at all costs. For example, you shouldn’t choose a lender who rarely works with clients with similar income levels, occupations, etc.

Another factor to consider is how they bill their clients. This can extensively help you plan your budget.

How comfortable are you communicating with them? Only work with people who are willing to put your needs first. This will go a long way toward helping you get the results that you need.

What Are the Red Flags I Should Watch Out For?

When looking for a loe doc loan, it’s important to watch out for lenders that are not transparent about their terms and fees.

You should also stay away from lenders who charge high interest rates or require large upfront payments. Trust your gut when searching if a lender seems suspicious, you may want to look elsewhere.

Finally, make sure you understand all of the terms and conditions before signing any agreement.

Don’t Overlook the Potential of Low Doc Loans

Finding low doc loans can be a great way to secure financing for your home purchase.

Just make sure to do your research and find the best lender for your needs before applying. With the right information and knowledge on your side, you’ll be able to find the right stated income loan and get on your way to homeownership.

Want to learn more about what we can do? Be sure to reach out to us today and see how we can help you.