The real estate market can be pretty complex and confusing. And if you are self-employed or a business owner, applying for a mortgage is another task. With the many different loan types, debt-to-income ratios, and limitations on qualification, you may find it challenging to manoeuvre through the whole process. 

That is why seeking the services of mortgage brokers can make the biggest difference. At Statewide Mortgage Brokers, we aim to provide a better understanding of the issues facing self-employed individuals and business owners when it comes to mortgages and accessing the best products and services. 

By exploring the unique requirements associated with being self-employed, this information can guide those looking to apply for a mortgage and how our mortgage broker can provide the necessary support for success. 

Fluctuating Income

Fluctuating income is a specific issue many self-employed people/business owners face when securing a loan. It can be hard to convince banks and other lenders that you are reliable and have a stable income. Banks often prefer regular income rather than that from self-employment, making it even more challenging to obtain a loan. 

As seasoned mortgage brokers, we can invaluably help you by finding the best loan option and negotiating with the lenders on your behalf. We advise, based on our knowledge of the industry, suggesting the most suitable loan for each case. This makes it easier to secure a mortgage to suit your current income.

Limited Traditional Documentation

Due to limited traditional documentation, getting a loan as a self-employed person or business owner can take time and effort. As a Self-employed person, you may not have sufficient W-2s since there may be long gaps in their documentation. You might also not have proof of income for the previous two years, which traditional lenders generally require. 

The good news is that Statewide Mortgage Brokers can greatly help since we are independent agents not affiliated with banks or lenders. We have access to many diverse lenders and can shop with them for the best loan on good terms and rates. We can also advise you on preparing your financial documentation for submission to the bank and present the best case for you. This can help make the process a lot smoother and quicker.

Tax Deductions and Write-offs

Tax deductions and write-offs are vital issues facing self-employed people and business owners trying to get a loan. When trying to get approved and showcase that you can pay off the loan, lenders want to see proof of your income. However, self-employed people often write off income that should count toward their loan application, making it hard to demonstrate stable and steady income over time. 

A mortgage broker from Statewide Mortgage Brokers can help. We will guide you through the complicated process and work with lenders to help structure a loan that considers the realities of self-employment. Our team will also discuss your income, deductions, and write-offs to ensure your loan application is accurate, ensuring you get the best loan.

Business Expenses and Debt

Self-employed individuals and business owners often face two specific issues when attempting to take out a loan: business expenses and debt. Business expenses can be hard to track for self-employed people, which makes securing a loan even more difficult. 

The majority of lenders, for example, require reliable accounts that demonstrate sound financial practice. Alternatively, many business owners can be burdened with debts that could present a financial risk to the lender, making taking out a loan significantly harder.

Our team can assist you by comprehensively analyzing your financial situation in detail. We can then present a variety of financing packages to you by considering your specific circumstances. Our mortgage brokers work with lenders who understand the business sector or position of the client to work out an appropriate package. You don’t have to navigate the complex world of finance alone, so feel free to contact us for assistance.

Creditworthiness

Self-employed people or business owners may face more difficulty obtaining loan approval because lenders take a more in-depth look at their financial status to determine their creditworthiness. 

Lenders are usually looking for robust economic and business statistics, timely payments, enough income, and a good credit score to support the creditworthiness of loan applicants. This means more financial paperwork may be needed, which is also a hassle. A mortgage broker can significantly help you if you are trying to get a loan as a self-employed individual or business owner. 

As accomplished mortgage brokers, we have experience dealing with lenders and understand what documents and information will be required to create a loan application package that will be approved. We evaluate your creditworthiness and help to ensure the proper documents and data have been included in the application. We will ensure the application is ready for the lender and represents you most favourably.

Finding Lenders who are willing to Offer Mortgages

Finding lenders willing to offer mortgages to self-employed people/business owners is not as easy as you think. Self-employed people historically don’t have the traditional income stream and credit score requirements that most lenders require for a mortgage loan. 

As a result, many are typically unable to apply and qualify for a loan on their own. This can be very discouraging and may leave you unable to move forward with your home-buying dreams.

 At Statewide Mortgage Brokerage, we can be a terrific asset for self-employed individuals seeking a mortgage loan. With our specially trained brokers, we can be a valuable resource in helping you find suitable financing options and, in some cases, even offer exclusive products unavailable to the general public. 

Since many lenders are more willing to work with financial professionals, our mortgage brokers have access to hundreds of financing options that may be tailored to your income and credit profile. You could have access to more options and ultimately get the best mortgage loan to purchase the home of your dreams. Please speak to our team for professional and timely assistance. We could make the difference in getting the right mortgage for you.