Applying for a loan is more complicated than what you might imagine. It may even be more difficult if you are a freelancer or a self-employed worker.
To make it easier, First United Bank – Mortgage Group, a mortgage programs expert in Krum, TX, has compiled all the crucial things that you need to know as soon as you’ve decided to apply for a loan.
Prepare the necessary paperwork.
A lender would typically request for several documentations so they’ll get a better picture of your financial status.
If you’re self-employed, you need to gather all the documents for the past two years that’ll reflect your financial history. These documents may include a list of all your debts, assets, and your federal tax returns.
Don’t lose hope.
Don’t think you won’t get approved. As long as you’ve been self-employed and have been earning money for at least two years, then your profile may look as ideal as someone who’s been working in an office for a specific period.
As long as you can provide a consistent taxable income, then you’ll have an equal chance of getting your loan approved.
Save as much as possible.
You shouldn’t spend all your money on the down payment. You still have to allocate your money to other things aside from a loan.
Also, having an emergency fund to tap into in times of need is also necessary, especially if you don’t have any clients. Having a healthy emergency fund can help you cover any unexpected repairs needed at home.
Applying for a mortgage as someone who’s self-employed can be difficult. That’s why you need to coordinate with a broker from a mortgage company to know your options and the proper procedures on how to apply for a loan.