You might have heard that buying a home is tricky if you work for yourself. It’s really not. Self-employed buyers just need to do a little more legwork. It’s slightly more time-consuming than what other buyers face, but in the end buying your own home makes it all worthwhile. The real difference between the self- employed buyer and others is, the self-employed person has no boss to verify income. So you’ll need to provide your lender plenty of documentation showing your earnings. You’ll need two years’ personal income tax statements, a balance sheet, and a profit and loss statement. The loan officer will likely call your landlord to ensure you’ve paid rent on time. She’ll also run a credit report.
You typically need to work for yourself two years to qualify for a mortgage. But there are ways around that. A large down payment—typically 20 to 25 percent-- can ease lenders’ fears. Another option: a B paper loan. You’ll pay a little higher interest, but you can refinance after you’ve established a good payment record with your lender. You work for yourself. Why pay someone else rent? For the self employed, buying a home is the final step to total financial independence
|
