If you want to buy a property then you in all likelihood need to apply for a property loan. You may not afford to pay the full amount in cash upfront and thus contact your bank or any private lender to avail such property finance. Once you visit any bank for a property loan, they will ask you to submit various documents and will check your loan eligibility based on your income and repayment capacity.
Banks can take more than a month to disburse your loan. Also, they can decline your loan without showing any solid reason. For example, if you have a poor credit score then you cannot get a loan from a bank. In this case, you can search private lenders online and you can find ample options along with some credit unions. You can apply for the low-doc property loan from their website and check your eligibility on the website itself free of cost. Some lenders even have a loan calculator on their website and you can calculate your EMI from with it before applying for a loan.
5 Benefits of low-doc property finance:
Low-doc property finance is specially structured for self-employed people. If you do not have adequate documents, then you can apply for such a loan.
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Here, you can find some benefits of low-doc property finance:
- In the case of a traditional property loan, you need to submit your income proof. For example, if you are a salaried professional then you need to submit your payslips. Apart from that, you also need to submit your income tax returns. But, you do not need to submit all of these documents for a low-doc property loan. You can submit minimum documentation to avail such a loan.
- Low doc property loan is a flexible financing option where you will have complete freedom to choose the loan, tenure, and interest rate. There are various options available online and you can compare the interest rate offered by different lenders to choose a feasible option. If you have a poor credit score, then you cannot get a loan from any bank and should go for a low doc property loan. In this case, lenders can provide a loan for purchasing a property and it will not be declined for your poor credit score. But they can charge you a higher rate of interest for your poor credit score.
- You can choose a low-doc property finance with a fixed rate of interest and variable rate of interest. You can also mortgage your existing property to avail yourself of a new loan and the lender will reduce your interest rate in this regard. If you choose a variable rate of interest, then your EMIs might reduce after a certain time depending on the market. It may sometime increase as well. The decision to chose either fixed or variable rate of interest should be based on proper research and consultation.
- Self-employed professionals do not have their payslips and cannot submit their income tax returns to avail a property loan. They are working on daily or weekly wages and thus cannot get any payslips from their employers. It is also applicable to contractual labour. These people can apply for low-doc property finance with their bank statements. Lenders will check banking transactions to know your repayment capacity.
- There are some lenders available that can customize your loan according to your needs. After paying a few EMIs, your loan will turn into a conventional property loan and your credit score will be improved.
Now you can search low doc property finances online and choose the best option according to your needs.