When looking at homes in Summerfield, there are a lot of things that you need to be thinking about. From your credit score to saving up for a down payment, you have a lot of big tasks on your to-do list. If you’ve got a good job making good money, this may be easier. For others, such as the self-employed, getting financing for a new home purchase can be tricky.
While purchasing a home as a self-employed is tricky, it’s not impossible. Fortunately, there are ways to get it done. Here are some of the things you may need to take care of and come to a prospective lender prepared with so that you can realize the dream of owning your home.
Be Employed for Two Years
In most cases, you will have to have been self-employed for two years in order to qualify for a home on self-employment income. When you’re searching for homes in Summerfield, remember to reach out to your accountant and get a letter verifying that you have been in business for two years. You may also be required to provide proof of a business listing as well as your website address.
Fix Your Credit Score
Credit scores have a huge impact on how much house you’ll be able to afford and if you’ll qualify for a mortgage loan at all. Make sure that your credit score is in good shape before talking to a lender about a home loan. If there are corrections that need to be made to your report, you’ll need to get them taken care of ASAP as it may take several weeks for them to clear and be corrected.
Save for a Down Payment
Another thing you should do is start saving for a down payment. As a self-employed person, then having a large down payment, such as around 20% of the purchase price of the home, may be even more important for you. If you have a high credit score or a lot of money being deposited into your bank each month, this may lower the required down payment amount, but it may be a good idea anyway to save as much as you can.
Consider Bank Statement Loans
Fortunately, even if you’re unable to save a 20% down payment and your credit score leaves something to be desired, it may still be possible to get approved for a mortgage as a self-employed person. Bank statement loans are offered generally by nontraditional lenders and usually involve higher interest rates than conventional loans.
However, a bank statement loan may be a good option if you’re determined to purchase a home but haven’t been able to qualify due to your self-employment status. You’ll need to have between 12 months and 24 months of bank statements for your business and personal accounts showing significant deposits each month.
Buying a home should be an achievable dream by anyone who wants to build equity in a house and save for and secure their future. Even if you’re self-employed, you should know that this is achievable. Visit the team at Southern Living Realty online today to see how we can show you some homes in Summerfield and get you into the home of your dreams today.