If you are self-employed, you are undoubtedly aware of the extra costs that are associated with being your own boss. Although there are many benefits associated with being self-employed, this venture can present difficulties in other aspects of life such as getting a Issaquah Real Estate home loan. As more individuals are beginning to reap the benefits associated with being self-employed, it is important to consider the factors associated with trying to get a home loan via Issaquah Real Estate.
As of January 10th, 2010, the Consumer Financial Protection Bureau added a few more legislations that make it more difficult for Issaquah home owners to acquire a home loan if there is any reasonable doubt as to whether they will be able to pay the loan back. With that being said, more in-depth background checks will be required of individuals looking to get a home loan. Some of the information that you will be required to present including proof to support the income that you filled out on the loan application.
It’s Not Impossible
Although the Consumer Financial Protection Bureau has been working to make acquiring a Issaquah Real Estate home loan more difficult, it is not impossible to acquire a home loan if you are a self-employed worker. With the help of a Issaquah Real Estate agent you will be able to understand 8 other factors that lenders are required to take into consideration when they are accepting or denying a home loan application in the Issaquah Real Estate market. Some of these factors include:
- Credit History
- Employment Status
- Debt Obligations
Another benefit that helps to make this process simpler for self-employed homeowners is that if a lender fails to take these 8 factors into consideration, they may become liable in a court of law in the event of a borrower being unable to pay it back.
Taxable Income Levels
Although there are ways to help self-employed homeowners to get a loan, it is still important to consider talking to a broker or a mortgage advisor to determine what the taxable income levels are for Scottsdale home loan applications. The majority of lenders will require homeowners to provide proof of their stable and consistent income to prove that they will be able to pay the loan back in full by its due date.
Consider Deductible Expenses
One of the largest issues that self-employed individuals have when attempting to acquire a Issaquah Real Estate home loan is that they have the most amount of flexibility when they are to report deductible expenses for income tax. With that being said, these deductibles are known to lower net incomes, thus making it more difficult to get a loan. You should consider finding ways to prove that your deductibles were used to improve your business in the long run to assure your lender that you will continue to have a stable source of income.
Applying for a home loan can be a difficult venture as a self-employed individual. By working with a mortgage lender or a broker, you will find ways to prove that you are able to pay the loan back and give yourself a better chance of receiving a loan.
~ Donita Dickinson ~