Monday, September 24, 2012

Getting to Know Low Doc Refinance Home Loan


You are responsible for all your finances. You have to make sure that you do everything possible to meet all monthly payments, especially mortgage payments. There may be times when you encounter difficulties that would affect your ability to make the payments on time. But you have to remember that your loan is your responsibility. You made the conscious effort to apply for a loan and by doing so, you are also binding yourself into an agreement.

But what if the situation is so difficult that forcing yourself to pay the mortgage would mean you have to sacrifice other more important things like food, education, and health care?

You need to find ways to better manage your finances. Refinancing your home loan is one very good way to do that. It is easier to keep up with monthly mortgage payments with a low doc refinance home loan.

Getting to know a low doc loan

A low doc home loan is a type of loan awarded to people who do not have a chance in getting approved by lenders because they cannot supply the essential documents like proof of income, tax returns, etc.

There are many individuals whose work doesn’t allow them to have the usual paperwork lenders ask for when assessing loan applications. Contractors and self-employed individuals are perfect examples of these. They cannot provide all the necessary paperwork to lenders or, if they do have them, lenders may find it a little hard to assess their risk because there is no certain way to prove their financial status because of the nature of their work.

A low doc (short for low documentation) will give these people a chance to get loans approved without a lot of hassles. There are lenders that will process loan applications by asking for fewer documents or using an entirely different method in assessing risk and eligibility.

Why refinance a low doc loan?         

Refinancing a loan is a great way to better manage payments. A lot of people are bound to experience financial difficulties at one point and this is one of the solutions these people will need.

You can refinance your loan to:

-          Take advantage of better interest rates
-          Change your loan type from variable rate to fixed rate
-          Lower the monthly payment amount
-          Consolidate or roll several debts into just one loan

Lifestyle changes (unemployment, additional expenses, demotion) are the typical cause for refinancing.

The process of getting a refinanced home loan is not that entirely different from the procedure you went through when you initially took out your loan. First you have to make the application, get a valuation, wait for the lenders to assess your eligibility, sign the loan offer, and, if you switched lenders, arrange a meeting with your current one to repay the existing loan and remove their mortgage on the property.

You can refinance your low doc loan and get up to 80% LVR. It’s unusual for lenders to lend more because they are higher risk. But they do exist. The only catch is they are more expensive.

To know your choices, it is best to consult with a mortgage broker. Your broker can help you learn more about low doc refinance home loan. He will be able to better explain the process and walk you through every step until you get your loan.

Once you have refinanced your home loan, you should find it a lot easier to keep up with your monthly mortgage payments and avoid foreclosure.

Thursday, July 26, 2012

ANZ Low Doc Loans – Which Lenders Offer Low Doc Loans?


For individuals who want to buy a house, the thought of having to go through a loan application scares the hell out of them. This is because a lot of people do not really know how to do it. For them, it’s a lengthy and arduous process.

This is true for some people, especially those who do not meet all the requirements. A lot of people need to know that lenders are very strict with approving loans. They don’t simply lend money to someone who asked. They will need to make sure that the person who gets the money is financially responsible and has the ability to repay the loan.

Most of the time, those who can’t show proof of income (pay slips, tax returns, etc.) are those who work as freelancers, contractors and sub-contractors, and self-employed individuals. These people mostly work on a project basis and can make a lot of money. However, the nature of their work keeps them from having all of the documents lenders ask for when processing loans. This is why a lot of them are most likely to get denied.

But with specialized loans, like ANZ low doc loans, these people will have the chance to obtain a loan to buy a house. These low doc loans are great because they offer people who can’t provide all the documents lenders ask for the opportunity to become homeowners.

Lenders who process these loans use a different method in determining a person’s eligibility for a home loan. They won’t ask for a lot of documents that they know applicants can’t provide. For them, alternative documents will do.

There are different lenders that offer low documentation loans. These days, it is easy for any unconventional worker to apply for a loan because of the number of lending institutions that they can approach.

Aside from ANZ lowdoc loans, these workers can acquire CBA low doc, NAB low doc, and St. George low doc loans, among others. Below is a list of other lenders that can offer these.

-          Pepper Home Loans
-          CBA
-          HSBC Bank
-          Better Mortgage Management
-          Bankwest
-          Adelaide Bank
-          AMP
-          Suncorp
-          Rams
-          NAB
-          La Trobe
-          Homeside
-          Carrington National
-          First Permanent
-          FirstMac
-          Bluestone
-          BMC
-          Homeloans Ltd.
-          Macquarie Bank
-          MAS
-          Citibank
-          Heritage Building Society
-          MKM Capital
-          Liberty
-          ING
-          Maxis Home Loans

When trying to figure out how you can obtain a low doc loan, you should try and look for a mortgage broker because they know how to do this best. They can help you find the best lenders.

Take note that the lending institutions mentioned above may implement different policies, so it is best to have a professional work with you when trying to apply for a loan. That way, you will be able to take advantage of competitive rates.

So make sure that you go look for mortgage brokers first. It should help make things a lot easier for you. 

Sunday, June 3, 2012

Refinance Low Doc Loans Conveniently with the Right Mortgage Broker


For most individuals who want to apply for a loan, the biggest obstacle they have to overcome is proving to lenders that they are responsible borrowers and that they will try their best to pay off the mortgage without any difficulties.
                                                                                                                         
The only problem is most lenders implement really strict policies with regards to granting mortgage loans. They are not going to approve any mortgage loan application unless they are able to establish that you are someone who can make payments religiously.

That means you have to meet all the requirements they set forth. The first thing you need to do is prove that you have a job and that it is one that you can have for the coming years. You will also need to have a good credit score.

This should be a good thing because lenders are trying to avoid a massive dilemma that involves homeowners who cannot keep up with the payments.

There is one thing people who can't meet the requirements can do to get approved

The great thing about the number of lenders and mortgage brokers these days is that there are alternatives to people who seem to be unqualified for mortgage loans.

Those who cannot provide lenders the right paper work to prove they have the ability to pay off a loan can opt for a low doc home loan. Short for low documentation home loans, these loan types appeal to people who do not look like a fitting candidate on paper but actually have the money to pay off the loan.

What is a low doc home loan?

This is a loan type that will not require much verification. Lenders who entertain this loan type are going to use a different process to determine whether or not you can be given a loan.

Low doc loans are perfect for those who are self-employed, PAYG contractors, freelancers, and sub-contractors.

Can you refinance low doc home loans?

First of all, refinancing is a process that will allow you to take out a new loan, with new terms (preferably new and better mortgage rates). People do is because they want to get more competitive rates on their current mortgage. That would mean lesser rates to pay and more money saved.

Refinancing is possible on low doc home loans. You can, as a matter of fact, refinance low doc home loans easily with the help of the right people.

What does this mean?

You have to get help from a really good and trusted mortgage broker. Brokers have the skills and experience to find great rates and look for deals that are perfect for your situation.

When you have someone helping you out, not only will you find things easy to accomplish, you will also learn a thing or two about how the entire process goes. That way, in case you find yourself in a similar situation in the future, you will be able to know what to do without like a deer in front of a car's headlights.

Furthermore, mortgage brokers can point you to the right lenders. This is a very crucial thing because the right lender can help you refinance low doc loans without any hitch.