Is getting a self employed mortgage tough? Find out the steps to make it easy!
Self employed mortgages are not that tough to get if you have the right agent helping you through the process. There are a few extra steps that you will have to go through to be ready with your mortgage application when you are self-employed! But that doesn’t mean that they are impossible to get. It just means, you need to be guided through the process by an expert!
What are the steps involved?
- Get your documents in order
- Get your history checked and updated
- Learn the market
- Search for lenders
- Finalize the deal
The most important thing for a self-employed mortgage application is to have the correct documents aligned and ready for perusal. Consult your mortgage agent and align the required documents to speed up your mortgage process and improve your chances.
The documents usually required by a lender are:
- Credit report
- Income report and tax statements
- Proof of business ownership
- Debt history
The credit report, debit history and your income statements are required to understand whether you are an eligible candidate for the self-employed mortgage. The amount you require must be with in your income capacity and you should be able to pass the stress test. If you do not want to go through this hassle, you can always find a private mortgage lender.
After getting the documents in order, you are required to check whether they are updated and error free. If you find something which is erroneously written, you can request a change and recheck your documents.
Whenever you go around to shop something, it is essential to do your research! With a self-employed mortgage, to know you are getting the best rates, you need to know the rates in the market. A bit of research never goes amiss. Find out the rates offered for your requirements. This can help you get the upper hand during negotiations as well. If you have a mortgage agent on your side, you would automatically be made aware of the rates and plans in the market.
There are lots of websites offering full comparison of rates from different lenders. You can also make use of the calculators available to figure out the difference made by the rates. A single number could help you save thousands of dollars in the long run. Always compare before you buy to get the best.
After selecting your lender, it is time to finalize your deal. Recheck the plan once again and make sure you have covered important sections such as:
- Closing costs
- Advanced payment conditions
- Interest rates
- Amortization period
After getting everything suited and tailored to your needs, get your contract read by a lawyer or your mortgage agent. They can help you figure out the clauses. Once you are given the green light, go ahead and enjoy your self-employed mortgage!