There are a lot of benefits when it comes to being self-employed, but working for yourself can make it tricky to obtain a mortgage.When you work with a qualified team of realtors, however, you’ll find out all the ins and outs of obtaining a mortgage that works for you. Let’s jump right in and review everything you need to know about obtaining a mortgage if you’re self-employed.
Obtaining a Mortgage When You are Self-Employed
One reason self-employed individuals can have a difficult time obtaining a mortgage is because of what appears to be large amounts of debt. Often times, self-employed business owners will take out loans in their names. Even if the loans are strictly for the business, it will still appear as a large amount of debt is in your name. Lenders can still work with you if this is the case, but it can require a lot of paperwork to show that your loans were in fact for your business. Because of how complicated and stressful this process can be, it’s always good to work with an agent who has experience selling homes to self-employed individuals.
When you first start thinking about obtaining a mortgage, you just have to be prepared for the fact that things may take a little longer if you are self-employed. If you are just getting started with your business, lenders may want a larger down payment from you than from someone who has a more traditional job. As we mentioned, there will also be a lot of paperwork. But if you know going into the process that you may have to make a large down payment and spend extra time doing paperwork, there should be no reason why you shouldn’t try to qualify for a mortgage. Again, the key is just to work with the right agents who can guide self-employed borrowers.
Showcase Your Track Record of Self-Employment Stability
If you’ve been self-employed for several years, don’t be afraid to show off the stability of your finances and your business. If you are able to show a track record of success, lenders are going to be much more open to working with you and helping you get a reasonable mortgage. But even if you just started a business, that shouldn’t deter you from trying to obtain a mortgage. When interest rates are low, it’s still worth trying to qualify for a mortgage.
Call Simply Referable!
There are any number of obscure and strange real estate laws in Maryland. The small team of realtors at Simply Referable will be happy to help guide you through the thicket. Each of our team members has an area of expertise, and we strive to form lasting bonds with each of our clients. We want to be your go-to realtors every time you or a friend wants to make a change. With local experience, our realtors can help you choose a house that is just the right fit for your family, now and forever. Contact us online or give us a call at 410-983-9045.