If you are interested in buying a home, you probably have many questions and concerns. In fact, when you are self-employed, the questions you may have seem to be tenfold.
When all is said and done before you go on the process of finding that home of your dreams, you are best served by getting your questions fully answered regarding a home loan. This is especially true when it comes to questions that you might have about qualifying for a home loan if you are self-employed.
Through this article, you will be presented some basic information about qualifying for a home loan. In particular, you will be presented with information that is helpful to you when it comes to qualifying home loans for the self-employed.
There are three primary factors that you should keep in mind when qualifying for a home loan if you are self-employed. These factors are:
One thing that many self-employed people do when they qualify for a home loan is to record their total income. Therefore, while you go about the process of applying for and qualifying for a home loan, you need to make sure that you thoroughly identify all of the sources of income that you have. Also, you must ensure that you can adequately document all your earnings. In this way you will be in a much, much better position of qualifying for a home loan
It is also important that you show stability in your company, in your independence. Lenders tend to hold back from self-employed workers who have significant income swings – they shy away from people who are self-reliant and suffer from starvation or hunger syndrome.
You will also want to offer a potential loan lender with a solid income history. In other words, you will be making available to a mortgage lender your self-employed income history for the last three to five years. The lender will want to see that your income was at least constant if it does not grow and grow year after year.