The self-employed are an often-misunderstood bunch. While these hard-working professionals put in countless hours of work to build their companies from the ground up, often, everyone from family members to banks cannot grasp that entrepreneurs have the ability to earn a steady income.
If you’re one of these aforementioned workhorses, you certainly understand that while your career choice can often work in favour of helping you attain the lifestyle you envision for yourself, it often works against you when it comes to dealing with lenders.
While you’re driven by a need to think outside the box, banks are not, and they prefer to approve mortgages for those who appear to have a steady job (appear being the keyword here).
And yes, many people view the entrepreneurial lifestyle as fast paced and wavering, but this doesn’t mean that self-employed individuals don’t crave the stability of owning a home that they can build a life in.
Fortunately, there are plenty of things that you can do to ensure that you will secure a mortgage. The following are just a few options that can help you get on the right track leading towards your white picket fence:
Keep your Credit Score in Check
Unfortunately, credit is one of those things that some people prefer to not pay any mind to until the time comes when they need to make their first big purchase – and can’t. Maintaining a high credit score is a big factor at play when it comes to getting a mortgage, so you should ensure that yours is far from low by paying off all of your debt before the clock strikes home buying.
Set up an Emergency Fund
Placing a portion of your income each month into an emergency fund is a great way to build up a cash reserve in the case that you should ever be pressed for money. Furthermore, this fund will signal to lenders that even if your business goes south, you will still be able to make your mortgage payments.
Don’t Write it all off
As a self-employed individual, of course you’re going to write off your home office during tax season. While many entrepreneurs get very excited about writing off as many expenses as they can – perhaps you should consider writing off less. If you lower your taxes a certain amount, it could make you qualify for a smaller loan that may not add up to the amount you require to purchase a house. So, those drinks you took a client out to? Just take the hit, it could save you more money in the long run.
Hire an Accountant
If you’re not the best at keeping your businesses financial records in order (read: organized), it’ll hit you big time when you try to approach a bank to get a mortgage. Hiring an accountant for your business takes the pressure off of your shoulders and allows a trained professional to ensure that your books are pristine. This will also provide you with a concrete record of your success as a self-employed individual.
Talk to a Mortgage Broker
Hiring a mortgage broker is one of the top ways that you can guarantee that you will not have any dramatic struggles in the process of buying your home. A renowned mortgage broker will work with you to figure out a concrete game plan to get you approved.
At the end of the day, it’s important to remember that self-employed individuals buy houses all the time. Just because the process of getting a mortgage may be a tad more complicated for you, by no means do you need to give up on your dreams of owning a home. If you’re looking for a mortgage broker who will walk with you every step of the way towards your future home, our team at CCF Mortgage may just have the ideal fit. Reach out today to learn more about how we can assist in your mortgage securing process!