No Doc Loans - A Speedy Alternative
There is a lot of controversy revolving around no doc loans and, as usual, there are always at least two sides to every story. While some lenders and brokers might try to persuade you to go for a more conventional loan, there are times when no doc loans are the ONLY loans you can qualify for. If you NEED to borrow money and there is a reason you can’t provide all the paperwork necessary to procure a more traditional loan, then you’re options are pretty limited. You can either contact no doc lenders or you can waste your time and apply for a conventional loan which you KNOW you won’t get anyway because you CAN’T provide the necessary documentation that would qualify you.
While it is true that no doc loan rates tend to be higher than their more conventional counterparts, it would be wise to consider the fact that those lenders are taking a gamble by lending that money in the first place. Look at it this way. You need to borrow money and you can’t come up with all the paperwork that your bank requires. Remember, the OPERATIVE word here is ‘need.’ You need the money and you can’t provide fifty thousand items on the list your “conventional” lender requires. Because there are no SOLID paper trails for no doc lenders to follow, they really are taking quite a risk investing in you. That’s the simple fact.
You have probably heard the old adage, “Something is only worth what people are willing to pay for it.” Well, people ARE willing to pay higher no doc loan rates because that loan has VALUE to them. They are in NEED and there is something out there to FILL that need. That something is known as no doc loans. Consider someone who is about to lose their home and they don’t have the documentation conventional mortgage lenders REQUIRE before they will underwrite a new mortgage. No doc refinance loans ARE available and they could mean the difference between losing your home and saving it by paying higher rates. No one is telling you that you can’t refinance later with a more conventional lender when you have the documents handy that they require. But if no doc loans save your property, then they would be WORTH what you are WILLING to pay for them.
Opponents of no doc loans will get into a philosophical debate with you every time. They will be quick to point out that you should have filed your taxes last year, or you should have organized your paperwork better. They have a whole list of should haves on the ready to attack you with, and you can’t even get a “But I….” in at any cost. Forget it. It’s too late now to worry about should have, would have, could have. You are on a mission NOW to save yourself and there is no time to wait around for that paperwork to MIRACULOUSLY appear in the knick of time. It ain’t gonna happen. Get over it and get on with it.
While the decision is ALWAYS yours, please understand that no doc loans, low doc loans, stated income loans and other less conventional forms of loans are available and the higher no doc loan rates might be a small price to pay indeed. Especially when you need no doc home loans or no doc refinance loans. Prioritize! Save your home first and lower the payments later.