Securing A Self Employed Mortgage
A mortgage broker will help ensure the lender knows you can make your payments, no matter what business is like. Here’s what you’ll need to provide in order to secure a mortgage:
Proof of Income
In most instances, you’ll be required to provide proof of steady income over two years. Lenders will take into consideration that small business owners claim expenses, which can make their income appear lower.
Excellent Credit History
A good credit score will help you immensely. Keeping your personal debt levels low will increase your chances of securing a mortgage.
Keep a file of important documents including tax returns and business registration in case your lender needs them. Make copies, if necessary.
Larger Down Payment
While 5% can be deemed acceptable for salaried employees, self-employed individuals should expect to be required to have at least 10% and as high as 20% as a down payment. Talk to your GLM Mortgage Group professional for more information.
One more thing to consider is the location of your business, which may help determine whether it’ll prove busy and profitable year-round.
While the journey to home ownership can be daunting, we’ll ensure you have all the information you need to make a sound decision and help you understand all your options. It’s important for you to do your own research as, the more you prepare yourself, the more desirable you’ll be in the eyes of the lender.