The answer is yes. Although it is more difficult to get a loan for self-employed people, it is possible to get approved if you prepare your paperwork correctly. It has gotten more difficult for self-employed people to get a big loan in the last ten years because the laws have changed and they started to protect borrowers. You can contact the best mortgage lenders in Atlanta such as the Moreira Team for help or guidance in these situations.
What Is The Difference Between a Self-Employed Loan and a Traditional Loan?
There is no real difference. Everyone is applying for the same type of loan. The requirements for a self-employed person, a contractor or a sole proprietor are higher than for a person who is employed by a company. Even though there might be more requirements, it is possible to get approved for these types of loans. You just need to prepare your paperwork and give it a try. Lenders need to make sure that you are able to pay the monthly amounts. That is why they have lots of requirements and ask for more paperwork than a traditional loan.
What Paperwork Do I Need to Present for a Self-Employed Loan?
As mentioned previously, a self-employed loan requires more paperwork. There are certain things you have to prove to the lender about yourself to give them the confidence to grant you a loan. An employed person presents his paychecks and the time they have been working at the company, a person who is self-employed cannot present these. The paperwork that a self-employed person has to present includes the following:
- Bank statements that are personal or business for the previous two years.
- The tax returns of the last two years should be prepared and ready to be presented.
- Good credit history is also important. This means that any accounts that are delinquent must be paid and cleared. If you have old liens or unpaid bills, then it is necessary for you to make an agreement with the financial institution or pay them fully to clean up your credit history.
- A good initial deposit is also a plus. The more you pay initially, the less you will borrow. The ideal initial payment would ideally be at least 10%.
What's Your Home Worth?
Where Should I Apply For My Self-Employed Loan?
Look for lenders that have given many self-employed loans before, they have a higher chance of approving your loan. Once you have gotten approved for your loan, then you can start looking for the perfect home. There are many lenders that approve these types of loans, you just have to make sure you prepare yourself in the best way possible.
Work hard to gather all your paperwork, save money for a good initial deposit, clear your credit history and contact us at https://moreirateam.com. We will be glad to assist you with your mortgage applications. We have contacts with more than 22 lenders. We can get you approved fast and with the best rates.