Tips for sealing a home mortgage loan

Posted on Thursday, July 12th, 2012 at 6:56am.

Today, we are featuring a guest post from Shaun Spellman. Have you ever wondered how to get a mortgage loan if you are self-employed? Shaun has the answers! Although it is a fact that getting a home mortgage loan as a W-2 employee may be much cheaper and easier than a self-employed individual, yet this doesn’t mean that you have to run to your cubicle in order to make it possible to take out a home mortgage loan. While there are some lenders who are concerned that you won’t be able to earn a steady income every month with which you can repay your home loan, some others don’t want to deal with the paperwork that may be needed by a self-employed individual to grab a home loan. Since the financial meltdown in 2008, there have been too many changes in the lending guidelines due to the real estate crisis and this has made it tougher for the self-employed to qualify for a mortgage. If you have a company of your own, read on to know some tips to enhance the chances of getting a home loan.
  • Show a history of your business: Did you set up your business for at least 2 years? If you didn’t, then you’re probably going to go through tough times securing a home loan. Usually the self-employed borrowers entirely depended on the stated-income home loans that were sealed without tax documents but gone are those good old days! Nowadays, the mortgage lenders always look for income stability before adding you to their books. They won’t lend money to a borrower who has just started his business as they’ll remain skeptical about their repayment ability. You may also need a clean credit report and a good score in order to secure the loan.
  • Assemble all your documents: As mentioned earlier that stated-income loans are no longer available, you have to show them documents of each and every penny that your business makes. All banks don’t have the same requirements and therefore you need to find out the requirements of the bank before getting help from it. Gather all the paperwork that can prove the total amount of money that you earn from your business.
  • Take a tax-hit if possible: The biggest advantage of a self-employed mortgage is the wide array of items that you can deduct from the taxable income. But cutting down on the taxable income will do more harm than good and this will even make it more difficult for you to take out a home mortgage loan. As lenders will always look at your taxable income, write-offs may go against you.
  • Meet the representative in person: Though getting an online mortgage loan may seem to be more convenient, as you can’t see the representative in person. As you’re already on the receiving end, you should decide going to the representative and talking to him face-to-face. There are some experts who can offer you various loan packages from which you can better choose than getting them online.
Don’t you yet have 2 years of business experience? Well, you need not fret as you can get a mortgage loan through a cosigner. Any qualifying co-signer, who has good credit score and is willing to put his credit on line for you, can assist you in realizing your dream of being a homeowner.

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