Buying or Selling a home Can be Stressful! 😵
The Experienced Greetings DMV Sales Network Agents Will Help You Find YOUR Home Or Sell Your House,
So You Have More Money, Comfort, And Achieve Your Goals Throughout The Process.
Getting a mortgage as a self-employed individual
As a self-employed person, it can be harder to buy a home because you have to go above and beyond to show that you can afford a house.
But the good news is, buying a home is possible!
What to Do When Buying a Home as a Self-Employed Person
The process of buying a house as a self-employed person may seem intimidating. It may feel like you should have started preparing two years ago, and it’s too late now.
But here are some tips to make the process easier for you:
Get Pre-approved for a Loan
A real estate agent may tell you what you can afford by looking at your financials, but you’ll never truly know how much you can afford until you apply for a loan. Getting pre-approved will help you figure that out.
It will narrow your home search and be an advantage in a competitive market when you show that you can give a good offer.
Prepare Your Financial Records
The three most important ones to get in order are:
Tax returns
Bank statements
Profit and loss statements
Minimize Tax Deductions
When you’re self-employed, your business expenses and tax deductions decrease your taxable income. Similarly, you pay less taxes if your business has a lower profit margin.
As a result, the income that appears on your tax returns will be low.
Plan accordingly and minimize the business expenses you take a month or two before buying a house.
This tip may apply more to self-employed people with more control over their business expenses.
Save Up a Significant Downpayment
Having a significant amount of money saved up for your down payment will ease your worries about the home-buying process.
Even if you don’t spend the entire downpayment you saved, having those extra funds will give you peace of mind when you move and find problems with the house or want to do improvement projects.
Fully Fund Your Emergency Fund
Emergencies are inevitable, especially if you buy an old house, so having a fully-funded emergency fund will ease your expenses during unexpected events.
How to Buy a Home When You’re Self-Employed
The experience will vary depending on where you’re buying, the lender you use, your income, etc.
Some programs are available where you can come in with as little as a 10% down payment with no PMI.
However, if you have substantial bank statements, you can qualify for a mortgage based on that.
There are some ways that we can put it together with programs that my lender friends can offer.
As an alternative to your tax returns, we’ll look at your bank statements to get approved for a loan.
If you are self-employed or a business owner, wondering if you’ll qualify, and want to buy a home in the DMV, call me at (703) 346-2776 or email me at Dan@greetingsvirginia.com.
