Traditionally, it’s been hard for self-employed Americans to obtain a home loan. However, this has changed in recent years as self-employment becomes increasingly common and lenders adapt their rules to suit the needs of this sector of the population. If you are self-employed, the following tips can help you present your financial situation to a lender in the best possible light.
Choose a Mortgage Lender with Care
Not all mortgage lenders are willing to work with self-employed individuals. If you need a mortgage lender who offers flexibility and multiple loan options, Mortgage Investors Group may be your best bet. We provide numerous home mortgage loan options and friendly, efficient service to all current and aspiring Tennessee residents.
Provide the Paperwork
MIG requires self-employed individuals to provide documentation proving at least two years of tax returns. If you run a company, you will need to show proof that you own at least 25% of the company in question. Bank statements showing continual income will increase a lender’s confidence in your ability to pay back a loan.
Manage Your Finances Wisely
A good credit score shows that you are financially responsible. Keep your score high by staying abreast of current payments and paying off as many old loans as you can. Monitor your credit report and immediately report any mistakes or outdated information to the credit bureaus.
Offering a 20% down payment on your loan is also a wise idea as doing so will likely lower the interest rate for the loan. It may take time to save up for such a payment but the financial rewards are well worth it.
Don’t worry if you can’t get a loan to cover the cost of purchasing the home of your dreams. Start small, purchasing a less expensive property and keeping up with monthly payments on it. Once your lender sees you can be trusted, you should have no trouble applying for a larger loan in the future.
Mortgage Investors Group has specialized in working with residential mortgage borrowers for nearly thirty years. Get in touch with us to get personalized advice about your situation or to start the process of applying for a mortgage loan online or in person.