วันอาทิตย์ที่ 11 พฤศจิกายน พ.ศ. 2561

Mortgage Tips for Self-Employed

Qualifying for a mortgage is a process which takes time and considerable amount of effort. Not everyone can get approved, much less with the terms a buyer ทาวน์เฮ้าส์มือสอง กรุงเทพ needs. Some factors, by banks and credit unions are looked upon more favourably than others. Parameters such as stable income and large personal savings are determining factors no matter whether an individual is self-employed or works for a company.

Some fields of work provide a stable source of income which can be easily traced by previous pay stubs and bank statements. But self employed business owners often lack those privileges. Instead they rely on past years' tax records. Stated and declared incomes are the most important factors a financial institution looks at when determining client's eligibility.

There is a vast difference between both forms of income. A declared income is provable source of funds, average earnings over the last two years. On the flip side, stated income is reasonable profits or earnings that a well established business has earned over a longer period of time. Five years is usually the norm for that. When buying a home for much less than the maximum approved amount, often times only a stated income needs to be shown.

Other less important factors, but significant none the less, determine the amount of mortgage and at what rate a person will qualify. Condition, age and down payment amount are all very important. To be easily qualified a business owner has to have twenty percent down payment available for a minimum of six months before the closing date backed by bank statements.

Properties that are immaculately maintained and not outdated stand a higher chance of getting financed as well. In case of default a bank can sell the property quickly, minimizing it's loses. Past property ownership is looked upon favourably too. It shows expertise in real estate ownership and a history of responsibility. That responsibility is shown through previous timely, continuous mortgage payments either on commercial or residential property owned.

Credit history cannot be overlooked either. Without a good beacon score, chances of getting approved diminish significantly. Ability to borrow and repay credit is critical. Especially for self-employed.

Credit cards and credit lines not only make it convenient for us to buy products with them, but they can also be used to improve credit scores.

Overall obtaining a mortgage for self-employed is not easy. However an experienced mortgage broker will accommodate those needs and find the lender willing to work with you.


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