5 Tips for Home Hunting while Self-employed - Mortgage Guys
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5 tips for home hunting while self-employed

Everyone will agree that buying a new home is much more complicated when you are your own boss, as most large banks prefer their clients to be permanently employed by a large company. That doesn’t mean you should give up on the idea of owning a home – it just means you need to come up with a bulletproof plan that might be a bit out of the box.

Some lenders are freelancer-friendly

When it comes to approving mortgage loans to self-employed people, each bank has its own set of policies. While some may be conservative and demand high-level assurances, others might be more flexible in this regard. As the number of freelancers in Canada keeps creeping up, it is logical that more and more institutions are willing to consider such applications. A mortgage broker in Guelph or other surrounding area can help you find a solution for more than just financial concerns. They can also focus on your specific needs or concerns

Everybody loves cash

It’s an easy rule – if you have a solid amount of cash at hand, the process of home purchase will likely progress quickly without too many obstacles. Banks can be expected to be more inclined to grant a loan to customers who can meet higher down payments. In certain cases, a large deposit might be even enough to persuade the previous owner to give you a delayed payment plan without the involvement of third parties.

Combine home and office into one

Those who intend to continue working from home should make sure their new house has the adequate facilities to support this kind of lifestyle. Buying a house that features an isolated wing or a soundproof room could be a good way to improve your work conditions without an additional investment. It might also be a bit easier to persuade a lender to approve a loan of this kind if you explain the dual purpose you have in mind.

Maintain good credit history

One of the greatest obstacles that some self-employed individuals experience is their full reliance on liquid funds. That often leads to a blank credit history, which can be a red flag for the mortgage lender. Taking out a pre-paid credit card or other credit instrument could be a good move, allowing you to demonstrate both your solvency and adherence to due dates.

Think ahead of the market

At this time, self-employed mortgages in Guelph and its surroundings are available if you know where to ask. If you keep a keen eye on the market, you might catch a favourable product with low interest rate that you could apply for. New banks might be joining the race for self-employed clients soon, so you could fare even better if you play it slow and methodical, waiting for the right offer to emerge.