Before you apply for a mortgage, you can improve your likelihood for an easier approval process by tackling some of these common issues that self-employed borrowers face.
Show that your income is stable. Potentially the highest concern for lenders when working with self-employed applicants is ensuring that their income is stable. Industry viability and potential market changes are the major concerns, so a track record of success can help you overcome this roadblock.
Get your credit score as high as possible. While good credit history is essential for all borrowers, it can help overcome other areas that may not be as strong in your borrower profile. And if you have an already well-rounded application, it can help lower your rate.
Have a rainy day fund saved up. This recommendation isn’t unique to self-employed loan applicants, but it can help provide your lender the necessary assurance that you can continue payments on your loan even in the event of a sudden downturn in your business.
Source:https://fhmtg.com/2021/07/22/how-to-qualify-for-a-mortgage-when-youre-self-employed/
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