When a borrower decides they want to refinance their home loan, they actually need to have a new mortgage. He would need to submit to his mortgage loan company of choice all the important documents that are necessary in the processing and approval of his loan refinancing application. The very process of collecting and making such documents available for submission can be exhausting and time consuming. This is the reason why there are applicants who prefer to apply for documentless mortgage refinance loan schemes.
As it is, with all the necessary requirements available for the loan company to verify and evaluate, an application can easily be approved, especially if the applicant has a good credit score. In reality, for a potential borrower with good credit, all they have to do is submit their credit score and social security number. The loan company will then process your credit score check by checking your credit history. If it is met, the company will now have the confidence to grant the borrower a new mortgage even without submitting all the necessary documents. However, it should be noted that loan companies do not automatically make undocumented mortgage refinance loans. First, the applicant must express their intention to be granted that type of loan. Second, lenders are more likely to make such loans only to applicants with really high credit scores.
An important advantage of obtaining documentless mortgage refinance loans is that the borrower has the privilege of maintaining their privacy. It is a fact that a large number of people are wary and even uncomfortable about sharing their vital information with loan companies. However, they cannot do anything about it, as providing such information is essential for applications to be processed and approved.
Some of the important information a lender needs to obtain online with an application is the applicant’s employment status, annual income, and any other relevant financial data and information. This is certainly not the same with the documentless refinance loan, in which borrowers are not required to disclose their vital information. There’s only one problem with such documentless loans: they come with very high interest rates. However, if you are an applicant who doesn’t mind high rates and values privacy, then this type of refinance home loan is definitely for you.
