Stated income mortgage loan, commonly known as no doc mortgage loan gives individuals with low income or bad credit record an opportunity to buy a home. The loan application of people with bad credit record and low monthly income is normally not been approved by the lenders, as they treat them as a risk.
With the help of stated income mortgage loan, these people do not have to face the rejection of the lenders. However, the interest rates in these loans are quite high when you compare it with the traditional mortgage loan. To get a discount in interest rates of stated income mortgage loan, you should take the services of online mortgage lenders. In order to get an approval for stated income mortgage loan, you need to provide the lender your credit score and job status. As your credit worthiness is totally dependent on your credit score, you have to give lender your social security number.
If your credit score is more than 650, your loan application will be approved almost immediately. There are some online mortgage lenders that approve application of people whose credit score is less than 600. To get stated income mortgage loan, you have to prove to the lender that you are employed. In addition, you also need to disclose your monthly income. As is the case with any mortgage loan, to get the possible loan deal you have to compare fees and rates of various lenders. No doubt, it will take plenty of your time but by doing it properly you can save loads of money.
You will not face any difficulty in finding a mortgage lender for stated income mortgage loan, as there are number of lenders operating in the market that exclusively deals with stated income mortgage loan. Some lenders usually charge high upfront fee with this loan. Make sure that you know how much they are charging at the time of signing a contract because once you have sign the contract paper, terms and conditions of the loan cannot be modified. Also take into consideration the repayment schedule of the loan.