Residential Mortgage Application: Stated Income Applications

One type of residential mortgage application that you might want to consider is the stated income application. With this type of loan, you are simply going to tell the lender how much money you make. The lender is not going to ask you for any type of income documentation or verify that you have a job. It is just going to take you at your word that you make the amount of money that you claim.

Process

Because the lender is not going to verify your employment or your income, the decision of whether to approve the loan is going to be based on your credit score in most cases. You are going to have to have a very strong credit score in order to receive the loan. In most cases, this process is going to be quicker than processing a normal mortgage because the lender does not have to verify your income.

Interest Rate

When you are considering getting this type of mortgage, you should think about the interest rate that you are going to have to get. The lender is going to require a higher interest rate because it is taking on additional risk by not verifying your income.

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