As a self-employed person, it’s easy to feel like the odds are always stacked against you. However, it’s not as hard to buy a home as you might think. Sure, being self-employed can sometimes make things more difficult for you, and some lenders might not like the idea of lending to a self-employed person. But that doesn’t mean that you should give up because there are plenty of options out there for you.
You Need to Have Been Self-Employed and Profitable for 2 Years
If you have only been self-employed for less than two years, you will find that it’s harder for you to get a mortgage. Most lenders will state that they need to see evidence of two years of income from your self-employed career before they’re willing to lend to you. This is their way of ensuring that the money they lend to you is going to be secure. It’s a safety measure, and that’s something that you’re just going to have to accept.
You’ll Be Required to Provide Evidence
As a self-employed person, you will fill out all your own tax forms. Once you’ve done that, you’ll get a confirmation of your income and the amount of income tax you will have to pay. It’s important that you keep hold of that documentation because the lender will want to see evidence of your self-employed income. As I’ve already highlighted, lenders are wary of lending to self-employed people at the very best of times, so you need to prove that your income is adequate.
Speak to a Broker if You Get Knocked Back
If you apply for a mortgage with a bank, and you then get knocked back by them, you might want to speak to a mortgage broker. They are great for people who are not able to get a mortgage from the traditional lenders. Brokers have a whole range of options that you might not even be aware of. They’ll present the options to you, and you’ll then be able to decide which one is best for you. So, if you don’t know where else to turn, speak to a broker like www.MortgagesForLess.ca.
Be Realistic About What You Can Afford
This is something that applies to everyone, not just self-employed people. However, you could say that it matters even more when you’re self-employed because everything is that little bit harder when you don’t have a full-time job to point lenders to. Don’t expect too much, and be realistic about what lenders are going to be willing to lend. You might want to use a mortgage income calculator to help you with this. It’s not something that you should ignore because you will only get disappointed and disillusioned if your expectations are greater than what’s realistic.
As you can see, it’s certainly possible to get a mortgage for yourself, even if you are self-employed. For example, if you’re having no luck getting a loan then you can go to someone like HomeXpress non qm lenders who are perfect for self-employed people. This isn’t the only possibility though. Alternatively you could also have a look at the possibility to use a no-fees mortgage broker. You shouldn’t to listen to anyone who tells you it’s impossible for self-employed people to get a mortgage.