One of the trickier bits of being self-employed is that you need to deal with all the bureaucractic hoopla all by yourself. Getting loans can also be a bit tricky since you have to have the proper documentation and resources to get your loans approved. These documents are typically made available to you by your company’s accounting department if you’re working for someone else.
Still, while it’s trickier getting these things while self-employed, it doesn’t mean that it’s impossible for you to get a loan or a mortgage. You just have to be better prepared.
Documentation is critical when getting larger loans such as mortgages. This would particularly include proof of income. That means you have to furnish your tax returns from the past (usually) two years. You do pay your taxes, right? Other statements might include your statement of assets and even list of clients.
Part of the checks done is a look into your credit score. So be sure that before filing for a loan application that your credit score will be to your favor. Pay off your credit card debt.
If you’re married and your spouse has a steady income from employement, then getting a joint-mortage might be the better deal for you. Lenders often value the fact that one of you is earning a steady income.
If you have some cash readily available, you can opt for a larger downpayment in what you’re purchasing be it a house or a car. This would mean that you’ll be financing just a smaller fraction of the whole and would only be levied interest on that fraction. This would also allow you to pay off the mortgage quickly.
