Over the last 10 years, acquiring a mortgage has become very difficult if you are self-employed. Before 2007, individuals who did not work for a specific employer could usually get a mortgage based on their income or self-certified mortgages. However, these types of mortgages have been removed due to regulations created to protect loan companies. Fortunately, there are still other ways to acquire a loan to purchase a house. Below you will find further information from the best mortgage lenders in GA, regarding the process of obtaining a loan for those who are self-employed.
How does a mortgage work for self-employed homebuyers?
Self-employed mortgages are the same as traditional home loans. The application process for a self-employed mortgage is similar whether you work for somebody or not. However, there are some additional requirements you may need to fulfill in order to obtain a mortgage.
What is required for you to get a loan when you are self-employed
Basically, a mortgage lender requires a guarantee that you can manage to cover the required payments for the mortgage during the lifetime of the loan. When working for a company, paycheck copies and/or bank deposits, plus the time you have been working for that company provide the required proof to a mortgage lender. As a self-employed person, you will not be able to provide that information so instead you will be required to provide proof of income via other means. Generally, be prepared to provide at least 2 years of tax returns or 2 years of personal/business bank statements to demonstrate proof of income. One thing to keep in mind is that some mortgage lenders will require an accountant to present the required records.
Other useful information that can help you
Besides providing proof of your income, you are also required to show mortgage lenders that you have a good credit history. So before you apply for a loan, make sure you check your credit report to ensure you have a clean record. If you have a bad credit record, make sure you catch up on any pending payments. One thing that can help you is how much money you can put down upfront for the property you are planning on buying. The less money you have to borrow, the easier it will be for a mortgage lender to approve the loan.
How to apply for a self-employed loan
When applying for a self-employed loan for a house, you should choose a lender that is known for working with self-employed people. Once you have found a good lender like Moreira Team, your next step is to make sure your credit records are good and in order. Start assembling the financial records and documents for your company.
Moreira Team is here to help you make the process of self-employed loans easier. Our qualified mortgage lenders will assist you every step of the process to ensure you make the right choice based on your needs and budget. For more information visit us at https://moreirateam.com/