No Document Loans – Is A No Doc Home Loan Right For You?

Here’s the story. An investor- we’ll call him “Bill”- was preparing to close on an investment property. He received a copy of the final loan documents via fax, and took the opportunity to look them over so he would be prepared to sign them at closing the following day.

The difference between taking blind chances and taking calculated risks is knowledge and experience. When a professional takes a stroll across Niagara Falls on a tightrope, what seems like a terrible risk to observers amounts to a walk in the park to him; because he knows what he is doing, and has done it before. The same principle applies to buying, financing, selling, fixing, and managing houses. Why do you suppose so few brokers actually buy/sell/rent their own houses versus entrepreneurs? I think it’s because listing, selling, and managing houses for a fee incurs no risk of money or credit; while investing and lease/Optioning does.

It is a waste of money to refinance your mortgage every three years. It is also untrue that if mortgage rates increase that the amount on your investments will go up as well! Has he ever heard of a recession?

When you’re out of work and there’s nothing to lose, taking a chance on yourself isn’t nearly as risky as quitting a good job to go out on your own; thus there’s very little to fear. Fortunately, I had gotten a Salesman’s license a year or so before losing my job, so nothing prevented me from going into real estate sales; but I had to be practical. I set a Go/No-Go point for the next three months as to how much money I had to earn listing and selling houses in order to continue to avoid a regular, low-level job. Because I really didn’t want to ever be fired again, I worked like a fiend to meet my goal, and I was able to continue on in the house business. Once I proved I could make a better living, I never looked back.

There are no stupid questions. Does the Mortgage Broker Brisbane answer all your questions to your satisfaction? Are his/her answers straightforward, honest, and respectful?

First off, don’t make any big purchases over the next couple of months. Besides the obvious fact that it makes less money available for the down payment, it might require to get yet another loan. A significant debt such as a $15,000 auto loan will look bad to the mortgage lender’s credit scoring systems. Plus. The human underwriter won’t want to see you adding a couple of hundred dollars per month to your monthly expenses. Generally, as a rule of thumb, you want your total debt obligation to be no more than 36% of your gross monthly income. You certainly don’t want to load up on consumer debt if you’re anticipating purchasing a home and you’re unsure of what your mortgage payment is going to be and if you think you’re within the range of exceeding that 36% requirement.

The most common loan fees are for appraisals in the case of home loans, credit reports, the services of a tax professional, a determination of flood problems, a title search, abstract and examination, a premium paid on the title insurance, settlement fees, any attorneys fees, inspections for termites and other pets, any surveying that is needed, recording fees, and taxes.

Not every lender charges for all of these services. Some loans, cheapest or otherwise, may not require all of these services. Again, this is an area in which you must do some comparison shopping. Some brokers are paid by the lender rather than the borrower.

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