Full Doc Loan: How To Qualify For It?
A full doc loan is a conventional mortgage. Homebuyers must satisfy three requirements for this home loan. Mainly, they must provide full financial documentation. Applicants must put a 20% deposit toward the home loan too.
Full financial documentation means providing three months of payslips. This equals full-time employment with no gaps in employment history. When applying for a mortgage, it’s not a good time to switch jobs. For lenders, it signals possible consistency issues. Lenders use the data from the financial documentation to spot trends about the applicant’s spending habits. They need to ensure that the borrower can repay the home loan in full and on time.
Bank statements complement the payslips. Once the individual earns income, lenders want to know what they do with it. Bank statements are the window to the financial soul. Again, lenders request this information to measure risk. Well-qualified borrowers have enough disposable income left after paying their rent, bills, and expenses. Their finances can handle the several lender’s ratios and financial stress tests too.
Mortgage House is a non-bank lender that competes with banks for well-qualified homebuyers. In addition, we offer several online resources to help applicants prepare for the process. On top of mortgage resources, we offer other tools such as our car loan calculator.
Full Doc Loan Conclusion
Well-qualified homebuyers can qualify for a full doc loan. Those who do not qualify for this home loan can qualify for several others. Our Mortgage House loan specialists guide both types of applicants. Plus, we work with investors too. Contact our team today.