As a self-employed individual you have the same loan options and requirements as a wager earner does. However, you do have the added complexity of providing detailed proof of income. Here’s what you need to be aware of and prepared for:
✅ Organize your finances and records. You will need to provide details to your mortgage lender.
📝 Provide comprehensive income documentation. You need to have at least two years of self-employment history to qualify. You have to show that you have regular, conisistent income, but only taxable income is factored into your eligibility.
💼 Build a strong credit profile. You will be held to the same credit score eligibility as ‘traditional’ borrowers.
📚 Understand lender income requirements and research tailored mortgage options.
📋 Get pre-approved for a clear budget. And get this pre-approval before you start looking at homes. The worst thing you can do is fall in love with properties that you can’t afford.
📞 Partner with a local, experienced mortgage professional. Who you work with matters when you are buying a home in a competitive market. Ask your real estate agent for recommendations on who they trust to get your offer accepted.
With these valuable insights, you’ll be well-prepared to navigate the home-buying process as a self-employed individual. Embrace the journey, gather your documents, and get ready to call that dream home your own!