The CalSun Basics Of Self-Employed Mortgage Loans.jpg

The CalSun Basics Of Self-Employed Mortgage Loans

Are you a business owner that wants to buy a home? Congratulations! In this blog entry, we will talk about what you will need to do in order to improve your odds of being approved for a mortgage. CalSun Mortgage is proud to help self-employed people buy homes. We have several options for mortgages available, so contact us today to learn more.

Consistent Or Increasing Revenue Is Vital

When you are self-employed, it is very important to lenders that you show consistent or increasing earnings. Because you are responsible for a business and your own wages, consistency and growth are two very important indicators that you will be able to afford a monthly mortgage payment. Usually, the lender will require a statement from your accountant or tax preparer that provides a breakdown of your businesses assets and liabilities.

You May Need A Larger Down Payment

In order to reduce some of the risk associated with loaning money to self-employed people, a lender may require a larger down payment. While many loans require at least 3% down, for a self-employed person that amount may be significantly higher. This reduces the amount of money that they have to lend and it can also mean a lower payment for you. If you are trying to buy a home, it could help to have another person on the loan with you.

Ensure That Your Credit Score Is As High As Possible

A good credit score is one of the most important factors for being able to secure a mortgage. Your credit score shows lenders just how likely you are to be able to make payments every month, and it also shows them what your debt to income ratio looks like.

Don’t Rush Into Anything

When you are trying to buy a home, it is important to not rush the process. Rushing may lead you to make mistakes or to settle for a higher rate than you might be able to get if you waited a little longer.

Contact CalSun Mortgage today to learn more about your self-employed mortgage options in the Los Angeles area. Our team is ready to help you by answering questions and providing you with some guidance on how you can be as well-prepared as possible.