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Getting Approved For A Mortgage Without Proof Of Income

Certain situations will put you in the position of not being able to verify your income. Legal problems, a divorce, or being self employed can all lead to this. If that's the case, know that you can still get a mortgage loan, but the process will not be easy by any means- and it will be more expensive.

Without hesitation, the first thing the loan officer is going to do when reviewing your qualification is to look at your credit score, or at least ask you if you know what it is. The credit rating you possess is largely going to determine whether or not you will be able to get the loan right off. Lenders will demand a rating that is average or better, since the risk they observe is going to be fairly high- certainly much more than normal.

Whereas normal mortgage loans might require as little as 3% down for qualifying and getting approved, a mortgage loan where income can't be verified will require as much as 10% or even as high as 20% and higher. The larger the down payment, the better of a chance you have in getting approved.

No-verification mortgage loans will not have a friendly interest rate. Although you would think it would be outrageous, lenders won't charge something that is impossible to pay- they want you to be able to pay them, after all. Do expect to pay more, however, and do keep in mind that if you stay current on payments your credit rating will rise, and you could qualify for discounts.

The biggest mistake anyone can make when applying for a no-verification mortgage loan is to state the wrong income. Getting a beautiful home is nice, but it won't be yours for long if you can't afford the payments. Instead, you must do your best to accurately judge your own income, and then account for over estimating. You want to give yourself the best possible chance in paying the loan off, or your money will be going down the drain.

Do know that not having verified income is going to put you in a tight spot. Make all the preparations you can to show income- from tax returns to contracts or pay stubs. Don't be surprised if you get denied a loan without verified income by 90% or more of lenders you speak to. It's a tough time for lenders, and the market is quickly shrinking for these loans.

In Conclusion

The road ahead of you, should you choose to get a no-verification mortgage loan, is going to be a long one. Start to piece together all receipts of income you might have and try to explain to the loan officer your situation. Every little bit will help!

Learn more on Non Status Mortgage UK and Non Status Mortgage Lender.