Self-Employed? Check Out these Tips to Get Approved for a Mortgage!
The standard documentation needed for buyers employed by someone else is typically six to 12 months’ worth of personal tax returns for the approval process. For the self-employed, the burden is a bit greater. If you work for yourself, and are looking to remortgage or buy a new home, getting approved for a mortgage loan isn't impossible, but it does mean you'll likely have to jump through many more hoops to prove your income than someone who's steadily employed and on a company payroll.
So, what can you do to help your chances of getting approved for a mortgage loan when your self-employed? Here are some tips for you to go by:
Proving Your Income
When lenders determine how much to lend to you, they generally base their calculations on your average profit in the past few years. That being said, one of the most important factors for self-employed workers is being able to prove your income to any mortgage lender you apply to. Most will want to see at least two years’ accounts or tax returns. The more accounts you can show the better.
Lenders prefer borrowers to employ an accountant to prepare self-employed workers’ accounts. Make sure your accounts are up-to-date and in order before you apply, as lenders can't typically rely on out-of-date figures.
Your Credit History Matters
A clean credit record will also boost your chances of getting a mortgage. A lender won’t just credit check you, they will also credit check your business by running a check on your business address. So make sure your credit report is in the best possible shape. Sort out any unpaid or late debts and check the report yourself to make sure there aren’t any mistakes that could damage your chances of getting a mortgage.
A Lake of the Ozarks mortgage broker is invaluable when you are self-employed. With all the different lending options available, our professional loan experts will work diligently to find a solution for your mortgage lending needs, while working to provide you the best rate possible.
Trust the Best Mortgage Lender at the Lake of the Ozarks
So, what can you do to help your chances of getting approved for a mortgage loan when your self-employed? Here are some tips for you to go by:
Proving Your Income
When lenders determine how much to lend to you, they generally base their calculations on your average profit in the past few years. That being said, one of the most important factors for self-employed workers is being able to prove your income to any mortgage lender you apply to. Most will want to see at least two years’ accounts or tax returns. The more accounts you can show the better.
Lenders prefer borrowers to employ an accountant to prepare self-employed workers’ accounts. Make sure your accounts are up-to-date and in order before you apply, as lenders can't typically rely on out-of-date figures.
Your Credit History Matters
A clean credit record will also boost your chances of getting a mortgage. A lender won’t just credit check you, they will also credit check your business by running a check on your business address. So make sure your credit report is in the best possible shape. Sort out any unpaid or late debts and check the report yourself to make sure there aren’t any mistakes that could damage your chances of getting a mortgage.A Lake of the Ozarks mortgage broker is invaluable when you are self-employed. With all the different lending options available, our professional loan experts will work diligently to find a solution for your mortgage lending needs, while working to provide you the best rate possible.
Trust the Best Mortgage Lender at the Lake of the Ozarks
So, if you're in need of a mortgage for a new home, need to find out about your refinancing options, or have any other questions pertaining to mortgage lending, trust in the mortgage professionals at MHQ - Mortgage HeadQuarters to have your best interest in mind. We've got more than 20 years of experience closing loans and making dreams come true, and can help you choose a mortgage program that's right for you!
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