After applying for a low doc home loan, there will be a number of criteria analysed before you’re granted the mortgage. These factors are investigated in order to assure the lender that you’re a viable recipient for their credit.Things considered include whether or not you have the capability to make the necessary repayments.
Here are some of the more common things that lenders will look for as evidence of your trustworthiness.
Self-Employment History
Due to the fact that low doc home loans are often sought by people who are self-employed, it stands to reason that lenders will want to be assured that not only are you actively working, but have the historical evidence to back up these claims. To do this, you’ll need to supply them with your Australian Business Number and GST registration to demonstrate your longevity and consistency as a self-employed individual.
The minimum period of time you have to have held your Australian Business Number for most lenders is over 12 months.
Credit History
As with any credit product, your history with other personal loans and credit cards will be taken into account. The cleaner your credit history – that is, having as few instances of bad credit as possible – the easier your overall application process will be, due to the trust instilled in your lender with the knowledge that you’ve proven yourself to be a reliable holder of credit.
These are the types of characteristics lenders will look for,in order to ensure they’re making a wise and sound investment in you and your financial abilities. This is even more important with low doc home loans, considering the lack of supporting evidence being provided in the first place.
