Sovereign bank stated income loan requirements
Many individuals dont know much about the sovereign bank stated income loan requirements. A stated loan income is a mortgage which does not necessitate the lender looking at the records of the borrower. As such, lenders do not look at income tax returns, employee income forms, pay stubs or any other records that may indicate how much a given borrower has and how much they are capable of paying.
Requirements for stated income loans
There are not many requirements when one is looking for a stated income loan. As already mentioned, lenders do not check the many documents that one would have ordinarily expected them to look at and this means that there are just a few requirements that need to be met.
It is worth noting that stated income loans are usually offered by small banks. Some of the sovereign stated loan requirements include stable employment, 40% and above equity position in the property and good FICO. A good reserve on the part of the borrower is also another important requirement.
Since one is only expected to state their income, applications for these loans are usually full of borrowers who have overstated their income. Some surveys show that up to 60% of the applications made for stated income loans are overstated.
Why stated income loans?
The unique sovereign bank stated income loan requirements are meant to help those individuals who are either self employed or those who have difficulties documenting their income. These loans are therefore meant for such people. The loans are also meant for people whose credit histories are not that good. As such, you will find subprime borrowers qualifying for these loans.
The challenge however has always been that these loans have been active sites for fraud. This is because lending banks cannot verify how many the borrowers have or how many other debts they have.
Getting the loan
Once one believes that they satisfy the sovereign bank stated income loan requirements, the next step is looking for a lender. Before you approach a lender, it is always worth it to improve ones credit rating. There are a number of ways through which one can do this. One may for instance pay other debts they may have as well as their credit cards. In addition, one needs to close other accounts they have which they are not using. If there are any accounts which you suspect account for your low score, you may want to request some changes to them.
The other thing one needs to do after meeting the sovereign bank stated income loan requirements is to now find a lender either physically or online. One can talk to their bank or credit union or even check for mortgage brokers online.
Once one has found a lender, it is time to do the application. One should go ahead to apply for an interview with the lender and be present on time during the time of the interview. To really show that you meet the sovereign stated loan income requirements, it is important that you carry all the necessary documents with you for the interview.