A traditional borrower has a steady and reliable income from a single employer. Those of us that choose to run a business need to jump through some extra mortgage hoops.
Its mortgage renewal time and here is where it all falls down for those ambitious individuals that struck out in the world of business ownership. This is because studious lenders acknowledge that a self-employeed individuals income is not static. It is subject to fluxtuations in the marketplace, nature and blatent acts of humanity.
Here is what you need to know if you are self-employeed;
- Have at least 3 years of tax returns available for your lender.
- It will make life sugnificantly easier if you have a substantial downpayment for your purchase.
- Be prepared for the fees that lenders like to charge, such as appraisal fees, lending fees, and mortgage insurance fees.
Now if you are anything like me in current quest to renew my own mortgage, you will know what I am talking about. I have had the deadline extended twice for completion. Fortunately my former lender doesn't seem to have a problem taking money for my mortgage even though I am switching to a new lender in order to get a better rate. I had to pay for an all new appraisal on my home, that cost $100 more than it did just one year ago.
In fact the whole thing is supposed to be completed tomorrow, yet I recieved a call today asking if it would be alright if stuff was delay for maybe another week. So here is my final thought on being self-employed and getting a mortgage put together. Just actualize that it will happen, and forget about it. Completely go about your life like money is not an issue and you no longer care if you have any. I have started dreaming of sleeping in my car by a white sand beach. I am so at peace with my current financial situation.
