When you are self-employed you get to enjoy the freedom of being your own boss and setting your own schedule. However, when it comes to applying for a mortgage, your self employment will work against you. Without the extensive work history and record of W-2s provided by a traditional corporate job, it is much harder to prove your worthiness to your lender. But, with the right mindset and proper preparation you can push past these barriers to get the loan you want. At BrightPath, our mortgage lenders for the self employed will give you all the tips and tricks you need to succeed.
Preparation is Key
As the old saying goes knowing is half the battle. So, before you even begin the application process, mortgage lenders for the self employed recommend that you do everything that you can to educate yourself. From reviewing the best loan options to finding the right mortgage lender to preparing the necessary documents beforehand, taking these steps upfront will make it much easier for you to navigate the challenges that lay ahead.
Mortgage Lenders for the Self Employed: Strategies for Success
Along with the right preparation, mortgage lenders for the self employed suggest the following tips and tricks to make you a more desirable candidate in the eyes of your mortgage lender.
- Increase your cash reserves. If you have been self employed for less than two years having strong cash reserves is crucial because it assures your lender that you will not default on the payments, even if your business falters. Also, it is a good practice to have these reserves to cover any potential issues that may spring up down the line.
- Limit your tax write-offs. While tax write-offs are beneficial for your business, they can be harmful to your loan application. This is because your eligibility for your loan is based on net income, which is reduced on your taxes when you take a write-off. As a result, try to limit or abstain from these write-offs in the months leading up to your application.
- Improve your credit score. Review your current credit score and work to increase it before submitting your application. Give yourself plenty of time and correct any inaccuracies that may be harming your score.
- Pay off your debts. Lenders will look deep into your debt history when considering your loan application. Having outstanding debt will make them question your ability to make your mortgage payments, so work to eliminate or decrease your debt as much as possible before you apply.
- Build your savings for a sizeable down payment. When you have more money available for your down payment it demonstrates to your lender that you are serious about your purchase, which goes a long way in swaying them to approve your loan.
Contact the Mortgage Lenders for the Self Employed at BrightPath Today
While it is can be much more difficult to get your loan application approved when you work for yourself, our mortgage lenders for the self employed will utilize their extensive knowledge and experience to get you through the process with ease. Contact us today to schedule a consultation and learn more about your loan options.
At BrightPath, we provide brilliant mortgage solutions to help you achieve your goals.