Although I’m not a spendthrift, I feel as if I never have enough money in my bank account. Because I’m setting aside cash in order to buy a new home, I’m always searching for ways to decrease my monthly expenses. Fortunately, through my research, I’ve found some great, simple tips that provide substantial savings over time. For instance, I turn off my HVAC unit whenever I’m traveling. I also conserve gasoline by running all of my errands for the week on the same day. On this blog, I hope you will discover some easy, painless ways to lower your regular monthly bills. Enjoy!
Are you self-employed and considering taking out a mortgage? Getting a mortgage when you're self-employed can be tricky but not impossible. Here are four tips to start your journey toward obtaining that mortgage.
1. Document Your Income
When filing taxes, your accountant will likely advise you to write off as many expenses as possible to reduce your tax burden. However, when applying for a mortgage as a self-employed individual, it is important to document as much income as possible. You will need to have all of your financial documents in order, including bank statements, income tax returns, and other financial information that will prove your income and creditworthiness. It is also important to explain any inconsistencies in your records or unusual sources of income. Having all of these documents readily available will help speed up the process and make sure that you are taken seriously when submitting an application.
2. Know Your Credit Score
Your credit score plays an important role in determining whether or not you qualify for a mortgage loan. Before you apply, take some time to review your credit report and make sure there are no errors that could affect your score negatively. If there are any discrepancies on the report or unpaid loans, take steps to correct them before applying for a loan, as this can lead to higher interest rates or even disqualification from certain lenders.
3. Speak With An Expert
Getting a mortgage is no small task. Having an expert to guide you through the process from start to finish is essential. Consider consulting with a financial planner who specializes in mortgages for self-employed individuals. They can provide invaluable advice about which loans may be best suited for your unique situation and walk you through each step of the application process with ease.
4. Prove the Source of Your Down Payment
Whether you get a self-employed mortgage with three percent down or twenty, you need to prove where those funds came from. It doesn't matter if your down payment is from a large invoice that finally got paid or a gift from your parents. You just need the paper trail to prove it. A mortgage lender wants to make sure that you can afford the house you are buying.
Securing a mortgage when self-employed isn't always easy, but it is possible if you document everything and work with an expert in mortgage services. Don't let being self-employed stop you from achieving your dream of homeownership. For more information on mortgages, contact a professional near you.
Share4 April 2023
