Self-employment is an increasingly popular option in today’s workforce, and it certainly comes with a lot of benefits. But unfortunately, getting approved for a mortgage isn’t one of them.
Banks and mortgage lenders tend to view entrepreneurs, small business owners and freelance professionals as higher risk than traditional 9-to-5ers at established organizations. With variable income month to month, reduced taxable income, lack of tax records and stricter rules for how income is assessed, the odds can be stacked against you if you’re self-employed.
Does that mean you won’t ever be able to get a mortgage if you work for yourself? Absolutely not!
Self-Employed Mortgage – Increase Your Odds of Approval
With the eyes of potential mortgage lenders focused closely on you, you’re going to want to be as squeaky clean as possible. Before you apply for a mortgage, do your homework and keep these tips in mind:
- File your personal tax returns and pay any income tax you owe on time. This shows that you’re reliable, honest and serious about both your business and your potential new mortgage.
- Keep your credit history clean. A bad credit history is a major red flag for anyone applying for a mortgage, but it’s particularly damaging for the self-employed who are scrutinized more heavily around income.
- Have as much money in your savings as you can. This not only makes the banks view you more favorably, but it may also lead them to give you a lower rate.
All of the tips above will help make you more appealing to institutions and private lenders, but there is still a lot of work ahead before you can sign on the dotted line of a mortgage agreement – and that’s where we come in.
Mortgage Guys are On Your Side
As business owners ourselves, we take a personal interest in making sure independent operators are able to secure mortgages and work toward buying their new homes. Our extensive network of institutional and private lenders offer options tailored specifically for people like you – ones that don’t require you to jump through extra hoops to prove your income.
The road to getting a mortgage might not be as easy as it should be for the self-employed, but we’ll say it again – the Mortgage Guys are here to help. Book an appointment today and we won’t rest until we find the option that’s right for you.