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.
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.
