Self Certification for These Changing Times

2007-03-08 10:33:40

( Financial )



Changing Employment Trends

Today's job arrangements are getting more and more informal. The typical 9-5 permanent job is gradually being replaced by part-time schedules, short-term contracts and away-from-office set-ups. Many people who were either laid off or have chosen to resign from regular jobs are now self-employed with irregular work hours and income patterns.

It is no wonder that people who are into these irregular work arrangements find difficulties in applying for mortgages or loans, especially when it comes to supplying information about work histories and incomes.

Self Certification is the Solution

Some lenders have recognized this predicament, so they have come up with self certified mortgage loan packages created especially for this type of employee.

In self certified mortgage applications, you need not provide any information about your occupation, job description or salary records. You simply sign a declaration that you will be able to afford to pay the loan charges, and put up a minimum deposit of about 20% of the loan amount.

Loan approval can be done within minutes of your application. You do have to pay the usual loan fees and put up the deposit account as soon as possible to avail of the loan.

The best part of a self certification loan is that the amount limit is very high, even up to a million dollars, as long as you have the deposit account to put up.

Limitations and Precautions

Self certifications are very attractive for someone with irregular employment arrangements or work hours, but don't be too swayed by the fact that you can borrow any amount. Self certification mortgage companies are usually very strict about the deposit requirement, as well as your ability to keep your loan payments up to date.

Due to their high-risk nature, self certification loans also charge higher interest and other fees.


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