she and her husband decided to live in the Las Vegas home she purchased before they met. But when she purchased her current home in November 2003, she opted for less paperwork with the no doc loan. “My situation has become a lot more complicated over the years,” she says, referring to her status as an independent consultant, her increased assets, and higher income level. “The more information I give the banks, the more they scrutinize it.”
While the no doc loan might be appealing to some, Sharp explains that the loan product was originally designed “for people who are sole proprietors or people who work independently and have a credit score at least in the high 700s.” He advises consumers to research loan products thoroughly. “No document loans can be used in predatory lending,” he warns. “An unscrupulous lender may offer this type of loan knowing the client cannot afford the home or is at high risk.”
That’s why arming yourself with the proper knowledge and preparing your credit profile before you buy is crucial to you being a happy homeowner.
Resources For Home buyers
Bankrate.com (www.bankrate.com) Bankrate.com provides information on the most attractive mortgage rates in the country. It also has loads of information on purchasing property and understanding mortgages.
Interest.com (http://mortgages.interest.com/content/calculators/index.asp)The Interest.com Website can answer just about any question you have about costs associated with a home mortgage loan. The site’s mortgage calculator can help determine how much money you can afford to borrow, how much your mortgage can save you in taxes, and whether it is better for you to rent or own.
(www.nw.org/network/home.asp) The NeighborWorks network of community organizations offers programs to help prospective homeowners purchase affordable homes and training programs to help maintain them. Programs are available in most states.
U.S. Department of Housing and Urban Development (www.hud.gov) HUD offers an array of information on buying, selling, and owning homes. The site also has information on affordable homes and foreclosures.