When to consider alternative documentation for mortgage?


Alternative documentation for mortgage provides for simpler documenting the loan approval process. Instead of verifying information with the applicant's bank and employer, the lender will accept W-2s, paycheck stubs and bank statements as sufficient proof.

You should consider alternative documentation for mortgage when your sources of income are difficult to document. Subprime lenders will often accept alternative documentation when taking a mortgage application.

The no documentation mortgage is practiced as the most convenient of all alternative reduced mortgage documentation loans. Your credit score has to be real good and you will have to put up with significantly higher rates, but if your income is particularly tough to verify, or you simply want privacy, or want to avoid paperwork, consider doing no doc mortgage documentation.

Basically, alternative mortgage documentation does not require third party verification, such as bank or employer - unlike full documentation. Therefore, mortgage approval is quicker with the alternative documentation for mortgage approval.

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