The Truth About No Doc Loans
Wednesday, March 9, 2011
No doc loans are great. I had the pleasure of using them last year and let me tell you they just about saved my business. You see I have my own business, and I have my own office in my home which means that I have no boss, no one to answer to, but also I have no guaranteed pay check. If you do not have a guaranteed pay check or a proof of income every month then it can be hard be get a loan and no doc mortgage loans seem to work.
Basically no doc loans mean that you are not required to provide documents for proof of employment or income, etc. This is great for someone like me who has their own business because I don't have any proof of income, my income changes from month to month. For someone in my situation (because I am my own boss) most banks and other lenders would just show me the door but with no doc loans I can get the money that I need. Most lenders will want to be sure that I will have money coming in every month in order to pay off the loan but because I have no employer in that case then I would be out of luck.
A no doc loan came in handy for me when my delivery van broke down. It was a write off and I needed to buy another one. There was nowhere near enough money in my budget to buy another delivery van but at the same time I needed to have a delivery van, it was essential for my business. So I did some research and found out that for a guy in my case no doc loans was the answer. With these, whether it's no doc mortgage loans or personal loans, you will have to pay a bit of a higher interest rate because really the lender is taking a big risk on you but really what other option do you have right?
The loan saved my business because without a loan I would not have been able to make deliveries to my customers, and once those customers become angry then you are out of business. So you can see that it wasn't a choice for me, I needed a loan and fast. In other words, if no doc mortgage loans didn't exists, then I would have probably been out of business for at least a week or two and I couldn't take the risk of losing my customers. In my business just like many others nowadays you will find that if you cannot deliver on your promises then your customers will go to someone that can.
