There are a lot of myths and misconceptions that come with being self-employed. One of which is that you won’t be able to buy your own house. But this couldn’t be further from the truth.
Buying your own home when self-employed can be more challenging than other types of mortgage application, but that doesn’t mean it’s impossible. You’ll need to be prepared to save, get your finances in order and be prepared for a long application process. It may be a lot of work, but you can be sure it will be worth it in the end.
Don’t let being self-employed stop you from getting a mortgage, here are some tips to help you get yours.
Make sure your finances and business are in order
You’re going to need to be on top of your finances to be able to apply for a mortgage when self-employed. You’ll not only need your business accounts to be in great shape, but you’ll want to demonstrate your personal finances are in order, that you have savings and can comfortably afford your mortgage and down payment.
This is where getting an accountant for your self-employment could be handy to make sure all of your accounts are in order and to help you get all the correct records ready for your mortgage application.
Work out your affordability
The next thing you need to work out is what kind of property and mortgage you can afford. This will give you a target for your down payment and can help you work out what your future expenses will be.
It’s worth looking around for mortgage quotes to help you get an idea of what your mortgage will be. A mortgage expert will be able to tailor the search to mortgages that are suitable for self-employed applicants, helping to save you time and stress when finding a mortgage.
Get ready for the paperwork
The paperwork involved in any mortgage application can be long and complicated, but when you’re self-employed, you’ll need further documentation to help your application. You’ll need to provide two years of tax returns, details of your assets, income and outgoings and other paperwork. Consulting with a mortgage advisor can help make sure you’ve got everything you need to make sure your application is as stress-free as possible.
Stay calm during the process
There’s a lot of pressure that stress that goes into buying a house, but it’s important to stay calm during the process. This will be an added challenge on top of running your business, which is why you need to take care of yourself too. Take everything one step at a time and seek help when you need it.
Gearing up to buy your first property is another milestone to be celebrated in your life. It’s a testament to all of your hard work and you should enjoy the process, even when it feels tough! All of the stress and waiting will be worth it when you finally get to own a home that’s all of your own.
