Refinance Home Mortgage Loans - What are "No Doc" Loans?

If you are looking to refinance your current mortgage, there are
respective options available to you. Homeowners refinance their mortgage for
many reasons. These include eliminating private mortgage insurance,
receiving cash out at closing, obtaining a fixed rate, and so forth. Refinancing a home loan affects getting a new mortgage. Thus, you are required
to show the mortgage company with assorted documentations. However,
if you prefer privacy, there are ways to obtain a loan with minimum
documents.

No Doctor Mortgage Refinance Loans vs. Low Document Refinance Loans

If you have got good credit, you may be able to obtain a no doctor refinance
loan. Each lender is different. Some lenders are willing to allow a
refinance with no documentations, whereas other lenders are not as eager to
take a chance. The procedure of attaining a no doctor loan is simple. With
these loan applications, the homeowner supplies their societal security
number and loan amount. The lender will establish loan approval solely on
credit scores. To obtain a no doctor loan, you must have got a very high credit
score.

Low written written document loans are different from no document loans. With low
written document loans, the applier is required to state income and employment
history. In this situation, the applier may provide recent paycheck stubs
or income tax tax returns for the past two years. These loan programs are
advantageous for self-employed or contract workers. Moreover,
people who have cash payments can get a low written written document refinance loan.

Benefits of No Document Refinance Loans

Obtaining a no document refinance loan is ideal for people who
desire to keep their privacy. Some people are hesitating to offer lenders
item information about their employment, income, and finances. While
lenders are not always thrilled to O.K. loans with small or no
documentation, they ground that an applier with an first-class credit
history is less likely to maculate their perfect record. Thus, they go an
ideal campaigner for a no doctor loan.

Pitfalls of No Doctor Refinance and Mortgage Loans

While no doctor and low doctor mortgage loans affect a speedier process, be
prepared to pay a higher interest rate on your home loan. If privateness
and velocity is a chief factor, a higher rate may not be a major drawback. However, if your primary ground for refinancing is to obtain a lower
interest rate on your mortgage, a no doctor refinance may not be the best
option. Before refinancing, get a quote from a lender and compare the no
written document refinance rate with your current interest rate.