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Mortgages for the Self Employed Made Easy

By Edited Nov 20, 2013 0 1

Mortgages for the self employed are not impossible to get anymore. Although in the past, more often than not, people who are self employed were penalized for their status either by being charged with a higher interest rate in their loans or by being rejected. This was usually the case because most lenders consider these self employed applicants higher risks compared to ordinarily employed workers who have a regular income. Whether a person gets paid on a daily, weekly or monthly basis, creditors usually see regular employees as more credible loan holders. Fortunately, a lot of lenders now realize the increasing number of self employed workers. Because of this, self employed workers don't need to worry that much about credit risks anymore.

Before embarking on a search for this type of mortgage, you must do certain things to become an attractive candidate for the lenders who are more than willing to offer mortgages for the self employed. In order to improve your chances of getting this type of loan, the first thing that you must do is maximize your credit score. By doing so, you will not only have a better chance of being approved but also have a better chance of enjoying a lower interest rate. You can also improve your chance by offering a larger down payment since by doing, so lenders will consider you to be lesser risk. In addition, you should also have a significant amount of cash reserves. By having high cash reserves, you can prove to potential lenders that even if your business takes a fall, you will still be able to pay your monthly payment.

Another way to increase your chances of having a mortgage loan is by paying off your consumer debt like car loans and credit cards on time. This is without a doubt a very reasonable thing to do because by paying off these debts, you can have additional cash flow. With this additional cash flow, you will also have a higher chance of having a bigger loan allowance.

By following these simple tips and by having enough patience and knowledge, you can boost up your chance of being approved for any self employed mortgage.



Sep 23, 2010 3:31am
Good advice about improving the credit score.
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