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Sunday, January 18, 2009
People who work for themselves and not big company can have real trouble securing a loan. Whatever the purpose they want the loan this can be very annoying. If you want the loan to buy your own home so that you can pay a mortgage instead of rent then it can be very frustrating. You would think most people who are able to support themselves and pay regular rent should be able to get a home loan.
The problem usually lies with your ability to prove your income without any doubt for the previous few financial years. If you are self employed this can be a red tape horror in terms of necessary documentation. Banks can have you running around for days and then still refuse you when you think you have jumped through all their hoops. Sometimes the problem may be an inability to accurately predict your next year's income due to the fluctuations involved in self employment.
If this is something you can relate to then you will be pleased to hear about a new type of loan on the market. It is officially called a low doc home loan and it is designed to make things easier for people like you who are looking for Australian home loans. Many lenders are starting to offer these types of loans with various conditions to suit the lender. You often have a choice of variable or fixed rate mortgage the same as you do with a regular loan.
There are of course pro's and con's the same as with any home loan product. You need to shop around and read the fine print to make sure you are getting the best deal you can get to suit your situation.
Some lenders insist you pay for lender mortgage insurance once you get into borrowing upward of eighty percent of the property's value. This is not necessarily a bad thing but it is something you need to be aware of from the outset. Banks also associate a higher level of risk with self employed customers due to a perceived instability in their income. Because of this it is possible they will charge a higher rate for you mortgage. On the bright side after a period of reliable payment many lenders will reduce this rate. It pays to discuss this with your lender when you first start shopping for your Australian home loans.
The things that may work in your favor on this type on loan are many. Proof of finance is not needed so if this has always been an obstacle to your acquiring your own home then that is great news for you. A simple financial statement will suffice. Most prominently irregular sources of income are considered. A big bonus for the self employed.
To help you check the fine print and locate the best deal for you, you will need to consult someone who knows what they are doing. These types of areas can be very complicated and a wrong choice can be expensive. You would do well to contact the experts at Directmoney home loans.
The problem usually lies with your ability to prove your income without any doubt for the previous few financial years. If you are self employed this can be a red tape horror in terms of necessary documentation. Banks can have you running around for days and then still refuse you when you think you have jumped through all their hoops. Sometimes the problem may be an inability to accurately predict your next year's income due to the fluctuations involved in self employment.
If this is something you can relate to then you will be pleased to hear about a new type of loan on the market. It is officially called a low doc home loan and it is designed to make things easier for people like you who are looking for Australian home loans. Many lenders are starting to offer these types of loans with various conditions to suit the lender. You often have a choice of variable or fixed rate mortgage the same as you do with a regular loan.
There are of course pro's and con's the same as with any home loan product. You need to shop around and read the fine print to make sure you are getting the best deal you can get to suit your situation.
Some lenders insist you pay for lender mortgage insurance once you get into borrowing upward of eighty percent of the property's value. This is not necessarily a bad thing but it is something you need to be aware of from the outset. Banks also associate a higher level of risk with self employed customers due to a perceived instability in their income. Because of this it is possible they will charge a higher rate for you mortgage. On the bright side after a period of reliable payment many lenders will reduce this rate. It pays to discuss this with your lender when you first start shopping for your Australian home loans.
The things that may work in your favor on this type on loan are many. Proof of finance is not needed so if this has always been an obstacle to your acquiring your own home then that is great news for you. A simple financial statement will suffice. Most prominently irregular sources of income are considered. A big bonus for the self employed.
To help you check the fine print and locate the best deal for you, you will need to consult someone who knows what they are doing. These types of areas can be very complicated and a wrong choice can be expensive. You would do well to contact the experts at Directmoney home loans.
About the Author:
Guy Baldwin is an executive of the website http://www.directmoneyhomeloans.com.au where you can get access to all leading lenders to get a best low ratesof home loan .You can also contact at 1300 882 432 and take their services free of charge.
posted by Credit Counseling at
6:50 PM
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