Are you self-employed and looking to purchase a home? With so many myths out there, it can be difficult to navigate the mortgage market. Thankfully, getting approved for a loan is possible if you know what to expect.
Let’s go through some of the most common misconceptions about mortgages for folks who are their own boss, debunking them one by one so that everyone has access to successful homeownership opportunities!
Getting a Mortgage is Harder If You Are Self-Employed
Due to common misconceptions, self-employed individuals face challenges when applying for a mortgage. However, understanding the truth behind these myths can help ease the process. Contrary to popular belief, many lenders offer loans with similar terms and conditions as those given to salaried employees.
By recognizing accurate facts about deposits and loan eligibility criteria, you can gain more confidence in your journey toward homeownership while self-employed.
Self-Employed Applicants Need at Least Two Years of Accounts
Busting another myth, self-employed applicants can secure a mortgage even with less than two years of accounts. While many lenders prefer consistency in financial records, some may accept just one year’s worth. The key is to showcase your ability to repay the loan and maintain stable finances; demonstrating reliability goes a long way in establishing trust with potential lenders as you venture into homeownership.
Self-Employed Individuals Can’t Borrow As Much Money
As you explore mortgage options as a self-employed individual, remember that your borrowing potential is based on your documented income. Consequently, maintaining well-organized financial records becomes crucial for loan approval. Consult with experienced mortgage brokers who can guide you toward lenders open to working with self-employed applicants and clarify any misconceptions.
Their expertise will help ensure a smoother journey toward homeownership when navigating this unique financial landscape.
Self-employed Individuals Need a Higher Deposit
Don’t be discouraged by the myth that self-employed individuals need a higher deposit for mortgage approval. Understand your options and research lenders who cater to self-employed borrowers, as they may offer products with lower down payment requirements. While saving more for your initial investment can result in better interest rates, remember that owning a home is still attainable regardless of employment status if you put forth effort in researching diverse financial solutions.
You don’t have to let the self-employed mortgage myths hold you back from owning a home. Blake Mortgage can help demystify and debunk these misconceptions so you understand what it takes for your homeownership dreams to become a reality. We provide specialized services tailored specifically for freelancers and offer the individualized attention that ensures every step of the process runs smoothly from start to finish.
Our experienced professionals will guide you through all aspects needed to secure an affordable loan with flexible terms matched perfectly for your situation, no matter how unique or complicated it may initially seem!