Let’s face it: it’s hard to get a mortgage for the self employed. You’re a credit risk, your job may be a little flighty and if you can find a lender willing to work with you, you might end up with high interest rates and psychotic loan officers. Here we’re going to go over some of the best things you can do to make sure you’re making the most of your next mortgage. It all starts with your application and understanding where you stand financially. Working within your means and working on your credit always helps, but there’s more so let’s get started.
Can You Really Afford that Dream Home?
The first thing you need to ask yourself is can you really afford your dream home? Everyone wants the dream! And while it doesn’t cost anything to dream, it can cost you big if you get the wrong mortgage. Understanding where you are financially, what you can honestly afford, and how much you’ll be able to qualify for will help you avoid a money pit.
What’s Your Credit Look Like?
If you don’t know what your credit score looks like, there’s no better time than the present. You can order a free credit report from the government, one of the many credit bureaus, or you can find one online.
But you don’t just want your credit report; the credit report is useless without a credit score. Each bureau is going to report your credit score a little differently. That’s why you’re going to want to get a sampling of 2 to 3 credit reports to understand where you are financially. The lenders are going to look at what your credit report looks like – you can’t go into this blind. You need to know where you stand.
When looking for mortgages for the self-employed, you’ll need to get preapproved first. A lot of people think that they can just walk into a bank after they found the house; sadly, it’s not that easy. If you can find out how much you can get from the bank before you even start looking for houses, you will be able to avoid a lot of heartbreak. Being prepared when you’re shopping for a home is one of the smartest things you can do. Mortgages for the self-employed are geared towards people like you, but they can still have some stringent terms. Get preapproved before you start shopping.
Talk to Different Canada Mortgage Brokers
Many people start working with the first mortgage broker that comes along – this is a huge mistake. A mortgage broker is like a plumber, contractor, or a bank; you need to know that they’re going to do their best to help you. You’ll want references, quotes, and everything else in writing. You need to know that you have options, so don’t just settle on the first Canada mortgage broker that comes along.
Mortgages for the self-employed great when you need financing, just know what you’re getting into before you commit to any one lender.