Getting a Mortgage Loan when You Are Self-Employed

The thought of qualifying for a mortgage can be stressful for many prospective buyers. If you are self-employed, you may have even more concerns. Even if you do not have a regular W2 or tax form from an employer, you can still qualify for a mortgage. There are some tips to follow, however.

Prior to the housing crisis and recession, many self-employed home buyers could simply attest to the amount of money they earned and that was it. Today, that is no longer the case. You will need to provide additional evidence beyond stated income. In order to document your income, you may be asked to provide business and personal income tax returns for the past two years along with financial statements. Documentation is critical when you are applying for a mortgage as a self-employed individual. Ensuring that you have all of the relevant documentation gathered together prior to applying for your mortgage loan can be a critical element in ensuring a fast turnaround. If any additional documentation is requested, provide it as quickly as possible.

You may also find that your chances of being approved for a mortgage loan increase if you are able to demonstrate that you have access to financial reserves in the event your business experiences a downturn. In the end, the lender simply wants to be assured that you can afford the home you are planning to purchase. Paying off consumer debt or consolidating your debts to a lower interest loan may also help in improving your cash flow while providing the lender with greater peace of mind regarding your ability to repay your mortgage loan.

If you are purchasing a home with your spouse who has a regular job, your chances may also be improved if your spouse applies as the primary borrower. You can then be listed as the secondary applicant. If that is not an option, you might consider asking a parent to co-sign the mortgage for you. It should be kept in mind that if you are not able to keep up with your mortgage payments, the co-signor will become responsible for the loan.

Although it is more challenging to obtain a mortgage loan today if you are self-employed, it is not impossible. With some careful advance planning, your dream of becoming a homeowner as well as a business owner can become a reality. 

Gabby Tyer - CRS, GRI
Real Estate Sales and Property Management
Managing Principal Broker/Owner
Realty Solutions
www.allaboutportland.com
www.jessicashope.com
Gabby Tyer is your ultimate real estate resource for Portland, Oregon and surrounding areas. Visit my website for detailed information regarding today’s real estate markets.
Portland Real Estate market stats news and education. Complete search access to all homes for sale in Portland, Oregon and surrounding areas.

How to Successfully Approach the New Marke

Is now the right time to purchase a home, or should you continue to wait and see how the market fares in the future? According to the latest reports, real estate markets in many areas are nearing a return to normal. With a combination of rising prices and declining foreclosure rates, many prospective buyers feel the time for waiting is over. In fact, according to a survey conducted by Trulia, 75 percent of people believe it is better to buy now rather than wait another year. Not all sellers agree, however. Only about one-third of sellers feel that now is the right time to sell. As a result, buyers who are ready to take the plunge are now facing a combination of low inventory levels and rising prices for the first time in years.  What exactly does this mean for you? It is only natural for prospective buyers to be concerned. Even so, it is important to avoid the temptation to make snap decisions. This can often result in buyer's remorse that can stay with you for years. Rather than giving in to the pressure to act fast, take the time to analyze your financial situation carefully. By understanding where you stand in terms of finances, you may find that you are better able to afford a home that is more in line with your needs.
In addition, it is important to make certain you are working with a qualified agent. When there is a glut in the local market and prices are low, this may not be as important of an issue. As multiple offers become the norm and inventory becomes more limited, it is imperative that you work with an agent who is knowledgeable regarding the local market. The agent you choose to work with should also be highly resourceful and reliable. In particular, your agent should be able to offer unconventional methods for locating available homes for sale. He or she should also be able to guide you in best practices for making you offer stand out from the crowd if you do find yourself in a multiple offer situation. Resourceful agents should also have access to a variety of funding options and lenders.  The local real estate market may be evolving, requiring a change in how you approach home buying, but by not giving in to rising pressure, you can find a great home to call your own.

Gabby Tyer - CRS, GRI
Real Estate Sales and Property Management
Managing Principal Broker/Owner
Realty Solutions
www.allaboutportland.com
www.jessicashope.com
Gabby Tyer is your ultimate real estate resource for Portland, Oregon and surrounding areas. Visit my website for detailed information regarding today’s real estate markets.
Portland Real Estate market stats news and education. Complete search access to all homes for sale in Portland, Oregon and surrounding areas.