Wednesday, February 28, 2007
mortgages and the many
so now you are pondering finding a mortgage to the place to call home. hmm, are you aware of: full doc, stated doc, & a no doc loan? maybe if we explain it more like this...
full document loan is like getting out of the shower, butt ass naked and everyone is looking at you. they see all the blemishes and faults and the good and not so good. translated, the bank has all your financial papers, credit score, defaults, outstanding loans, length of time at work and dwelling, along with all the dirty gritty details of your financial history.
stated document loan is like being in your underwear with maybe a robe slightly covering you up. translated, the bank sees some of you, and the rest they take what you tell or state to them. with some restrictions and allowances.
no document loan is like being fully dressed for winter with the hat and gloves with scarf wrapped around you. translated, the bank will take what you tell them almost at face value, with little information supported.
alright, lets explore employment with each of these. and rates.
full doc: you are steadily employed with corporate america. potentially best rate to be had.
stated doc: maybe self employed, or slight irregularity with your credit. rates a bit higher than a full doc rate.
no doc: maybe self employed with sketchy income. maybe severe credit issues, or a bankruptcy. rates are even higher than the stated doc rate.
full document loan is like getting out of the shower, butt ass naked and everyone is looking at you. they see all the blemishes and faults and the good and not so good. translated, the bank has all your financial papers, credit score, defaults, outstanding loans, length of time at work and dwelling, along with all the dirty gritty details of your financial history.
stated document loan is like being in your underwear with maybe a robe slightly covering you up. translated, the bank sees some of you, and the rest they take what you tell or state to them. with some restrictions and allowances.
no document loan is like being fully dressed for winter with the hat and gloves with scarf wrapped around you. translated, the bank will take what you tell them almost at face value, with little information supported.
alright, lets explore employment with each of these. and rates.
full doc: you are steadily employed with corporate america. potentially best rate to be had.
stated doc: maybe self employed, or slight irregularity with your credit. rates a bit higher than a full doc rate.
no doc: maybe self employed with sketchy income. maybe severe credit issues, or a bankruptcy. rates are even higher than the stated doc rate.
