Documents play an important role, whenever people look to obtain a loan of any kind.
However, there are a number of people that have a good career, along with a stable income, but do not have the documents to prove the same.
Under the circumstances are these people ineligible to purchase properties or apply for loans? That is certainly not the case as such people have an option to apply for a no Doc mortgage loan if they are looking to purchase a property for themselves.
Just because a person does not have the documentation required by lenders, one cannot assume that the person is ineligible to purchase properties or even obtain a loan for any reasons.
There are a number of people that are self employed or involved in business activities which provides them a sizable income.
Such people should in fact be encouraged to apply for a no Doc mortgage loan and given an opportunity to utilize their income in a proper manner.
One does not understand as to why traditional banking institutions rely heavily on documents and not look at the credibility of the person making an application for a mortgage.
One can only imagine about the predicament that these people would face if they had a property of their own, but wanted to apply for no cost refinance.
Even though they could prove their credibility, they would still be turned away by the banks for want of documents.
One can definitely say that banks and credit unions should be more flexible in their approach towards people that are in a stable position rather than turn their backs away from them.
Lending institutions that are in the business of offering a no Doc mortgage loan have realized to their benefit that they stand to gain in a big way by offering mortgages to people that cannot prove they have a stable income.
After all, lending institutions hold the property that people are looking to purchase until the mortgage has been repaid in full.
The title of the property will be transferred to the purchasers only after a full repayment of the mortgage has been made.
Lenders could look to charge some additional interest or apply extra fees on any paperwork that has to be carried out.
However, the facility has been made available for people to utilize and invest in properties of their choice, even if they are unable to provide sufficient documentation about, their sources of income.