It’s a sad reality confronting our real estate market presently with the daily news of foreclosures happening everywhere. There is one group that is always weary of their fate in regards to obtaining a mortgage and that is the self employed. These are the individuals that rely on themselves for their daily bread, and because the guarantee of getting the monthly payment is not always there, mortgage lenders are careful about trusting them.
However you do not need to be anxious as the possibility of you as your own boss is completely real. But there are a number of things that you must do before hand to ensure your odds of obtaining one. The first and most evident thing is your reliability. Your credit rating has to be outstanding above everything else. If you have any loans taking place, you have to ensure that you make all the needed payments as well. This will provide your mortgage lender a basis to trust you because you have proved your value previously.
Saving for your first home is recommended especially when you are self employed. You need to be able to make that initial down payment, 5% at the very least. However when you want to record even higher points, be in a position to pay 10% of the initial payment and that would be great.
Your lender wants to know that you are in the position of settling all the needed payments. That means that you have to have some type of proof of income.
If you work through the internet where a check is not always given, you should rely on the proof of income form that is provided to you by the tax body, like the IRS for Americans. Having these it’s not totally impossible to apply for a loan, and it gives you more points when you have been self employed a longer period.
As the housing crisis bottoms we’ll have plenty of one in a lifetime real estate investing opportunities. You may also want to read our articles about home refinancing so you’ll have funds to invest!
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