Getting a Mortgage Is Not Only For Contracted Workers

By Jason Myers

It's a sad reality facing our real estate market today with the daily updates of foreclosures occurring everywhere. There is a group that is always weary of their destiny when it comes to obtaining a mortgage and that is the self employed. These are the individuals that rely on themselves for their daily bread, and due to the assurance of getting the monthly payment is not always there, mortgage lenders are careful about having faith in them.

However you do not need to be anxious since the possibility of you as your own boss is completely real. But there are some things that you must do ahead of time to guarantee your chances of obtaining one. The first and most obvious factor is your credibility. Your credit score has to be outstanding above everything else. If you own any loans taking place, you must make certain that you make all the required payments also. This will give your mortgage lender a reason to trust you because you have established your worth previously.

Saving for your first house is suggested specifically if you are self employed. You need to be able to pay that initial down payment, 5% at the very least. But if you want to record even higher points, be in a position to clear 10% of the initial payment and that would be awesome.

Your lender needs to be informed that you are in the position of making all the needed payments. That means that you need to have a type of proof of income.

If you work through the internet where a check is not always given, you must rely on the proof of income sheet that is provided to you by the tax body, like the IRS for Americans. With these it's not totally impossible to apply for a loan, and it gives you more points when you have been self employed a longer duration. - 23222

About the Author:

As the housing crisis bottoms we'll have plenty of one in a lifetime real estate investing opportunities. You may also want to read our articles about home refinancing so you'll have funds to invest!