Alternative documentation refers to other documents that a lenders might request from a housing loan borrower should he or she be unable to produce the standard set of required paperwork for loan application.
While there are many types of alternative documentation, they are most often required when a borrower is unable to provide proof of income.
For example, standard income documents or home loan applications are CPF statements, computerized payslips, and/or income tax statements. So if a borrower is unable to provide them, or the information contained in these documents are unable to verify his or her declared income, a bank might request for alternative income documents.
Failure to submit them can either lead to a lower loan quantum approval, or outright rejection of the loan application.
Some forms of alternative income documents include:
- Employment contract
- Personal bank statements
- Tenancy agreements
A banker should be able to advise a borrower what documents are acceptable to the bank.
Take note that different banks can have different types of alternative documentation.
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