Congratulations! You have the entrepreneurial spirit, and you’ve decided to start your own business. There are plenty of benefits to being self-employed. While it takes hard work and determination, the pay-off will be worth it in the end! If you’re planning to buy a house in the midst of building your business, there are some things you should know. Applying for a mortgage while self-employed can be difficult, but we can help. Here’s what you need to know.
Prove Your Income to a Mortgage Lender
Most mortgage lenders will require you to provide two years worth of accounts in order to prove your income. We recommend hiring an accountant if you don’t already have one to help with the process. You should also focus on saving enough for a healthy downpayment.
Finding a Mortgage Lender
Without an adequate account of your work and a good credit score, the banks may turn you away for a self-employed mortgage. However, don’t lose hope. Private mortgage lenders generally have less strict requirements and, while you may still need to prove your income, a low credit score is less of a concern. Private mortgage lenders can help you get approved for a mortgage in almost any situation.
The Do’s and Don’ts of Self-Employed Mortgages
In summary, here is a list of everything you should and should not do if you’re planning to apply for a mortgage when you’re self-employed:
Do keep up to date with your records and accounts.
Do hire a certified accountant to help prepare the necessary documents.
Do speak to a private mortgage lender about alternative solutions.
Don’t minimize your income for tax purposes.
Don’t assume it’s impossible to get approved for a mortgage just because you’re self-employed.
Talk to a private mortgage lender today about your options; there may be different solutions based on the set-up of your business. It also never hurts to get testimonials from your clients as proof you have a good track record.
Whether you’re looking to borrow or invest, Alta West Capital can help. We offer a number of lending solutions for first time buyers, individuals and families that are new to Canada, self-employed business owners, real estate investors and more. Alta West loans are fast and flexible to fit your needs. Visit our website to apply online or contact us directly. Call (403) 254-9075 or email firstname.lastname@example.org.