Boston Property Management: Self-Employed Borrowers
It may be a bit more difficult to get a mortgage if you are self-employed but it’s definitely not impossible. You just need to make a bit of an effort so that you can get a mortgage as a self-employed person. The key is to get everything ready on time and be prepared to get a lot of paperwork ready so that you can get that well deserved mortgage.
Start gathering all your documents as early as possible. Once you get your rate quote, you need to start filling out all the forms. The stage after that is when you need to start submitting all your relevant documents. They are the same as for employed personnel, though the only addition is the 1040 tax returns. You might need the help of a good tax adviser as there are write-offs will hurt your debt to income ration. So you need to show something which the lenders would prefer to see.
Boston Property Management: Pay more for Mortgage
Self-employed applicants have to pay more for their mortgage because they are termed as high-risk borrowers. Lenders will always slap a higher interest rate unless you can show that you have a good payment history.
There are certain ways you can get approval for your mortgage. All you need to do is to make sure your business is registered and licensed. This will make it easier for lenders to trust you. Pay yourself a W-2 wage so that the lenders consider you a good bet. Don’t have too many tax deductions as this can spook the lender. Keep your business and personal accounts separate so that your job is made much easier. Also make sure that you keep track of all your expenses. If you can afford it, then make a large down payment. One of the best bets is to work with a smaller mortgage lender which could be more helpful. If you don’t have any money, you can tap into your IRA.
So do your due diligence and get everything right so you can get that mortgage you are looking for. It will take you a bit of an effort but in the end you will prevail. So cross your fingers and apply for that mortgage. Who knows you might be able to get it?
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