It is everyone’s dream to purchase their own home, but it is not an easy process. Applying for mortgage loans can be a tedious and tiresome process, with months in waiting. However, self-employed people find it more difficult than people with fixed regular jobs in finding the lender which will provide them with the best interest rates.
One of main reasons behind this difficulty is the uncertainty associated with incomes and job-security of a self-employed applicant. There is no guarantee of a fixed income of the debtor affecting the loan repayment. But that does not mean that self employed cannot apply for the loan.
When a self-employed person is applying for a home-loan, there are certain qualifying criteria’s for qualifying. The applicant needs to provide income proof that will furnish as the status that the person business is going fine financially.
Apart from the income proof, there are other documents that need to be submitted with the bank to apply for a mortgage loan. These include the business credit report, trading tax returns and business license. Another criterion is that the person should have been self-employed for at least a period of three years prior to applying for the loan.
So, if you are qualifying the criteria, you can apply for a mortgage loan to purchase your own home.