For those who are self-employed, getting a mortgage is a bit tricky; this is because lenders want proof that you have a steady income, and that you will be able to keep up with the payments. Usually, they will take a record of the previous three years of bank statements and use it to determine if you are eligible to get the loan or not. If you do not have proof of statements available or any transaction proof, then your application will be rejected.
Tip 7- Deposits, the Bigger the Better
The larger the amount of deposit is, the better it will be for you. Not only will you get a bigger mortgage loan range then you were expecting, but also the interest rates will be in your favor. If you want to make the most of it, try to save at least 10-15% even 20% if possible, of the value of the property, meaning that if the property is worth $150,000, then you should have a minimum mortgage of $15,000 (10%)- $30,000 (20%) in mind.
Tip 8- Sharing is Caring
If you think that you alone cannot handle the costs of the mortgage being expensive, especially the deposit itself, then let someone help you. By having another person to help you, the chances of securing a decent mortgage amount increases.
Tip 9- Plan before you Act
Make sure you have your mind set before you apply for the loan. Gather all documentation in one place, ensure you have the deposit amount, and make sure you have all the necessary things to get the loan to pass. Stopping in the middle or realizing that you do not require the loan in the first place will only hurt your record.
Tip 10- Take Help from your Realtor
There is nothing to be afraid of, you can always approach your real estate agent and ask them to help you through the process. If your approval is not for as much as you initially wanted try not to see this negatively. Most likely if the lender doesn’t feel you can afford the loan than you probably couldn’t. They may have saved you from a very big disaster. There is a home out there in every price range and your realtor can still help you find the one that is within your budget.