If you are self-employed and are considering purchasing a home, it’s important to be aware of the changes that have occurred in the world of lending.Here is a quick check list for prospective buyers.
As everyone is well aware, getting a loan is not nearly as easy as it used to be. Those who are self-employed are having a more difficult time borrowing money and must provide documentation that shows their income. The IRS is being contacted for income verification by many lenders and any fraudulent income claims are being dealt with.
In a nutshell, if you are self-employed and applying for a mortgage loan, be prepared to:
Line up all of your documents showing your income before going to apply for a loan.(2 years tax returns including all schedules)
Check your credit and do what you can to improve your credit score.
Pay your bills on time.
Most importantly, tell the truth. Misrepresentation can cost you.
Many lenders are hiring more loan officers. They are convinced that current low rates are going to bring many more new and refinance loans in the next 18 months or so. Mortgage rates have been decreasing since April, closely tied to the unsteady economy where wary investors are putting their money in safe investments like treasury bonds. As these yields go down, interest rate goes down as well. In other words, the unsteady global economy equals good news for the home buyer acquiring a mortgage and home owners who are refinancing their home loans.
If you are self-employed and can provide decent and accurate documentation there is no reason you shouldn’t be able to secure a home loan.
Call me today with help concerning the documentation needed for a self-employed borrower. Helping you find the home of your dreams is one of my top priorities.
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