If you’re looking for lo doc home loans, then you might be wondering exactly how to go about it. While there are many lenders out there that offer this type of product, not all of them are created equal. That’s why it’s important to take your time and do your research when choosing one. Here are five mistakes that can make the process more difficult:
Not making a loan application checklist
When you apply for a low doc loan, it’s important to give yourself the best chance of success. This means being prepared with all the documents required by your lender. There are many different lenders in Australia, and each will have its own set of requirements – so it’s important that you check that you have all of them before submitting your application.
Not having all the required documents can result in rejection of your loan application, which means no money for home improvements or debt consolidation. If one thing is certain when applying for a low doc loan, it’s that not having the right information from the start will only set you up for disappointment down the track!
Submitting your application with errors
Make sure you have the right supporting documents: This includes things like your bank statements, payslips and tax returns.
Check the spelling of your name and address: If you’re unsure about what’s been entered on these fronts, double-check it before submitting them to the lender. It’s just common sense!
Check the spelling of your partner’s name: You wouldn’t want to submit an application with someone else’s details by mistake. It’ll only take a minute but could save trouble later on!
Check the spelling of your employer’s name: Again, this would be embarrassing if left unchecked—and can delay processing time unnecessarily. So make sure everything is correct before submitting anything to a low doc loan provider!
Failing to include all supporting documents
If you don’t include all the documents required by your lender, your application may be rejected. This means that you will have to re-apply and pay more upfront. You’ll also get charged a higher interest rate as the loan provider will consider that you’re an increased risk.
Consider these consequences before applying for a low doc loan:
If you don’t include all supporting documents, your application could be rejected. This means that you will have to re-apply and pay more upfront.
Your home loan provider may charge a higher interest rate than expected because they will consider that you are an increased risk when they see missing or incomplete information on your application form (such as payslips).
Taking out too much money
You need to think about whether you can afford the repayments. You should ask yourself if you really need that new car or could get by with an older model. If this is a dream house, will you be able to afford the mortgage?
If you do need to take out a loan, it’s important that you don’t take out more than what is necessary for your purchase. It’s better to take out a loan that you can afford and pay off quickly than one where the repayments would be too high for your budget. If you cannot make these payments on time or at all, it can lead to a bad credit rating which could stop people from lending money in future or charge higher interest rates – making it harder for them!
Not meeting the serviceability requirements
In order to avoid a wrong decision, you need to be aware of the serviceability requirements. Serviceability is basically a measure of an individual’s ability to meet their loan repayments.
Serviceability requirements vary from lender to lender and depend on things like your income and expenses. If you don’t meet these requirements, it could mean that your loan application has been rejected or that you will have to pay more interest than expected (and this will cost you more over time).
We hope this article has given you some insight into what to look out for when applying for lo doc home loans. If you’re thinking of getting one yourself, we recommend that you make sure your application is complete, accurate and includes all supporting documents before submitting it.