Self Employed? 4 Things to do when buying a Colorado Springs Home
Starting a business and operating a business take a great deal of effort and energy. I’m doing it myself every single day as a Realtor. Most business owners struggle to keep working on their business while working in their business. I think my “To do” list grows every day, no matter how many items I check off. Getting a home loan can make it even harder to concentrate on making your business a success. Don’t let your new home purchase throw a wrench in your business plan! I’ve created a short list of things that you can do to make it even easier to move your home buying dreams to home owning reality!
As always, it’s much easier to get a loan approved if you have good or excellent credit, than if you have damaged credit. Don’t forget that I’m a Realtor and am sharing my experiences within the industry. Always have a mortgage expert advise you properly when you’re looking at home loans.
1. 2 Years of Business financial statements. Gather up 2 years of business financial statements and tax returns. If you’ve been in business less than two years, you should gather everything you have to date including your weekly deposits and projected expenses. Think of it as building a case as to how reliable your business is for providing you with an income.
2. All Other Income statements. Gather up your bank statements, investment account statements and any other items that help document your assets and income. Again, you are providing evidence to help a lender understand that you can afford your house payments.
3. Consider 10% down. In many cases, self-employed individuals may need to consider a higher down payment. Many lenders look favorably on a 5% to 10% down payment by a self-employed individual.
4. Select an experienced mortgage lender. You want to make sure that you select a lender with experience in self-employed individuals and getting them loans. I’ve been told numerous times that it’s not a big deal to work with self-employed people, but you want to find someone who values you and your contribution to the economy, not just find you to be not a big deal.