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4 Tips to Qualify for a Mortgage When You’re Self-Employed

Posted by Mark Dawson, February 2nd, 2016

Make Qualifying for a Self-Employed Mortgage Easier

Self employment has become a popular choice for many individuals, and why not? You set your own schedule, you’re the boss. It’s very empowering. But, there’s always uncertainty and fluctuations in income, and if you’re interested in buying a house, that uncertainty can seem like a huge barrier to obtaining a mortgage.

It doesn’t have to be. There are more institutions offering self employed mortgages for individuals; with a little work and pre-planning, a self employed individual can increase their chances of qualifying for a mortgage and be on the way to owning their own homes.

As you’re considering a mortgage, these steps can help you to increase your chances of qualifying for a mortgage.

  1. Make sure you can prove your track record.
    Many lending institutions ask for up to two years of steady self employment history. You want to show that you are steadily working because that can show a lender that you are committed to creating your desired outcomes.
  2. Take your time in preparing.
    A mortgage is nothing to rush into. It is important to take your time to lay the ground work, especially if you are self employed.  Often, financial advisors suggest taking 2-3 years to prepare. During that time, you can concentrate on building a cash reserve and saving for your down payment. Make sure you understand what is involved in qualifying for a mortgage and how that will affect your credit and financial situation. It’s also a good opportunity, during your planning period, to work cleaning up your credit, if it’s not where you want it to be.
  3.  Consider finding a co-signer.
    Sometimes, self employed professionals may find that lenders are more receptive when they come in with a co-signer, an individual with good credit who is willing to sign for that mortgage.
  4. Be sure that your property taxes and income taxes are up to date.
    It is just that simple!  If your taxes aren’t up to date, it essentially becomes a non-starter so this step is quite crucial.

 

At CVE Mortgage Group, Inc., we have ties with many different lenders, some of whom offer mortgages specifically designed for the self employed. Contact us today to speak with one of our mortgage specialists about starting the process or preparing for a self employed mortgage.

If you have a comment about this blog post, have questions about the different mortgage types we provide or wish to ask any other questions about how to get a mortgage from CVE Mortgage Group, please feel free to contact us