Looking for a mortgage can be tough at the best of times, and for those who are self-employed, there are obstacles to overcome. From the lender’s perspective, a person who is not directly employed by a company is a riskier proposition, but don’t let that dampen your enthusiasm, as most lenders look at this on a case by case basis.
Talk to your Accountant
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If you tell your accountant that you will shortly be applying for a mortgage, he or she will be able to present your accounts in the most favourable way. If your business involves cash payments, it won’t work in your favour if you do not declare this, as your income will be considerably lower, and that could affect the mortgage application.
Keep Your Books Up To Date
Any lender wants to see evidence of a regular income, and if your accounts are not up to date, this could have a negative impact on the outcome. If your business is registered, this will work in your favour, and as far as a lender is concerned, the longer you have been in business, the better. There are established mortgage brokers who offer home loans Sydney folks rely on and they can easily be found with a Google search.
Credit History
As the person does not work for a company, the lender will pay close attention to the applicant’s credit history, so make sure that your credit score is healthy, even if it means clearing any outstanding debts, which will boost your credit rating.
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You can easily check on your credit score through government website, which will tell you exactly where you stand. In the event your credit score is less than ideal, your mortgage broker will know whether or not this will have a negative impact of the home loan application. If it does, he or she will advise you to clear outstanding debts prior to making the home loan application.
Finding the Right Mortgage Broker
The Internet is always a great source of information, and a Google search will help you to find the right mortgage broker. Ideally, you want one that has extensive experience in helping self-employed people obtain mortgages, and with their expertise, it won’t take long to find a suitable home loan package. By using an independent mortgage broker, you can compare many home loan offers and decide on which is best for you, rather than dealing with a broker that represents a single lender.
Allow Adequate Time To Prepare Your Accounts
Time is definitely something you will need, which will help your accountant prepare your business accounts, and when that is done, you can approach an independent mortgage broker, who will work on your behalf to source the home loan that best meets your needs.
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Once you have made contact with a mortgage broker, he or she will tell you what is required when applying for a home loan while self-employed and once you receive approval, you can begin your search for the perfect home.
