During the 2007 housing collapse a lot of changes have occurred in the lending industry.
One specific loan that has taken a hit is stated income mortgages.
These mortgages used to be offered for people who had a difficult time proving their income.
Small-business owners and self-employed professionals who had trouble documenting their income with W-2s, used these loans to get mortgages approved.
However, due to sub prime mortgage abuse a lot of these borrowers ended up going into foreclosure.
Until only recently have lenders slowly begun to offer these loans again.
No longer can borrowers with poor credit get approval for a stated loan.
It is not important to have a good credit rating if you want your loan application to be approved by different lenders who offer these loans.
Anyone who is interested in getting a stated loan needs to ensure that they find the right lender for their loan application.
Because these loans are riskier for most lenders, they are usually accompanied by a higher interest rate.
People who apply for these loans don't mind taking the increased rate because it means they will get their mortgage loan approved.
The problem with these loans is that a lot of people tend to over state their income.
In the loan application most people will always over estimate rather than under estimate.
To eliminate the people who lie about their income, a lot of lenders will take a look at the median income level for that occupation range.
They will approve the loan based on that median.
If a borrower over states his or her loan in state income mortgages, most lenders will reject the loan.
Honesty is very important if you want your loan approved.