If you are self-employed or otherwise don’t have a lot of verifiable income, you may have the most trouble getting a loan. While two years ago banks and other lenders might have bent over backwards to lend to people with unverifiable income, that gravy train is off the tracks. If you do get a loan, you’ll pay far more for it than you would have before the credit markets dried up.
These types of loans were a significant part of both the unjustified run-up in real estate prices and the subsequent blow up. Whether it was the lenders, the real estate agents, the buyers, or some combination, the use of the no-doc loan was a disaster waiting to happen. And happen, it did in late 2007. We're still trying to pick up the pieces.
One of the shovels being used to pick up after all this mess is the shovel of stricter lending standards. The no-doc loan is no more and good riddance!
As always, please visit our website www.weslingfinancial.com or email us at info@weslingfinancial.com for further info and to discuss your personal situation.
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