Self-Employed? Here’s What You’ll Need to Get a Mortgage Approval

Self-Employed? Here's What You'll Need to Get a Mortgage ApprovalThere’s a lot of flexibility and personal freedom associated with self-employment that can be a great benefit to your lifestyle and your pocketbook. However, because of the somewhat unpredictable nature of self-employment, it can make acquiring a mortgage a little more difficult. If you’ve recently become self-employed or have been in the game for a while, here are some things you may want to consider before submitting your mortgage application.

Putting More Money Down

20% is often considered the magic number when it comes to the down payment because this will allow you to avoid homeowner’s insurance. However, if you’re self-employed, you may want to consider putting even more money down as this will more strongly signify to lenders that you’re prepared for home ownership and in control of your finances. While your down payment will provide you with equity instantly, a higher payment will also lower your monthly cost and make your finances even more secure from month to month.

Minimizing Your Debt

The amount of debt a potential homeowner has can adversely affect any mortgage application, but in the event you’re self-employed, a high debt load means even more money is being paid out of a salary that is not necessarily predictable. By paying off the debts you can before applying for your mortgage, you’ll be able to invest that much more of your hard-earned money into your monthly payment without breaking the bank and cutting monthly expenditures.

A History Of Self-Employment

Being self-employed means you’ll have more to prove to your lender, but if you have a spotty self-employment history and long periods without bringing in any income, this will make it even harder. Instead of jumping into the mortgage market soon after becoming self-employed, try and have at least two years of successful self-employment behind you. By being able to prove this, the lender will see that you’re a solid financial bet and an experienced professional who will be able to find work when it’s required.

The nature of being self-employed and the fluctuations in income that can come along with it can make a mortgage lender nervous. However, by having a solid history of self-employment behind you and minimizing your debt load, you’ll be able to prove to the lender that you’re serious about home ownership.

If you have further questions, I’m self-employed and have some tips and tricks to share.  Give me a call – J.P. Cook – 602-320-4253.

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10246 E Prairie Hawk Lane San Tan Valley, AZ 85143

$450,000 - 3Br/2Ba -  for Sale in S8 T3s R9e, San Tan Valley
New
$450,000
3 Beds
2 Baths
1,344 SqFt
Status Active
MLS # 6682979
Property Type Manufactured Home
Price Type --
Experience the ultimate in rural living with this charming 3-bedroom, 2-bathroom manufactured home nestled on a sprawling 1.25 acres of land, free from the constraints of HOA regulations. This property offers the perfect blend of tranquility and convenience, with a shared well providing ample water access and electricity readily available. As the surrounding area undergoes rapid development and growth, this property stands as an excellent investment opportunity, offering the chance to capitalize on the burgeoning market while enjoying the peacefulness of rural life. With a reasonable price tag and endless potential, this home represents not just a place to live, but a smart investment in your future. Don't miss out on the chance to make this idyllic rural retreat your own!

18024 N Somerset Drive Surprise, AZ 85374

$450,000
2 Beds
2 Baths
1,834 SqFt
Status Active
MLS # 6676600
Property Type Single Family Residence
Price Type --
Paid for solar means electricity bills under $40 a month! Exquisite 2-bedroom, Plus Den, 2-bathroom gem. Palo Verde Model. Step into a world of harmonious living with its seamless open layout that effortlessly connects the kitchen and great room, ideal for both dining and entertaining. Indulge in chef's kitchen with granite counters and stainless steel appliances, perfect for culinary adventures. Plus, enjoy the added benefits of an extended garage for your golf cart & tons of garage storage. Step outside for the tranquility of mature citrus trees, providing an outdoor oasis. Split bedroom floor plan. With paid-for solar, annual electricity bill of just $237, a recently redone roof, and new AC system still under warranty for peace of mind!

778 E Rojo Way Gilbert, AZ 85297

$450,000
3 Beds
2.5 Baths
1,422 SqFt
Status Active
MLS # 6676968
Property Type Townhouse
Price Type --
Welcome to this charming property with a natural color palette that creates a warm and inviting atmosphere throughout. The kitchen boasts a center island, a nice backsplash, and plenty of storage space for all your cooking needs. The master bedroom features a walk-in closet for added convenience. Additional rooms offer flexible living space to suit your lifestyle. The primary bathroom includes double sinks and good under sink storage for optimal organization. Don't miss out on this opportunity to make this house your home!

418 S 226th Drive Buckeye, AZ 85326

$450,000
3 Beds
2 Baths
1,735 SqFt
Status Active
MLS # 6677357
Property Type Single Family Residence
Price Type --
This is one special property! Located on the 18th green of the Sundance Golf Course. Spectacular MOUNTAN VIEWS! This wonderful 3-bedroom, 2 bathroom home features beautiful QUARTZ COUNTER TOPS, a large kitchen island plus a breakfast bar. The kitchen opens to the spacious family room and dining area. The 3rd bedroom is set up perfectly to be used as a den, office or bedroom. The primary suite features an ensuite with dual sinks and walk-in closet with updated counter tops. Step outside to your covered patio with sunshades, misters, and manicured gardens. Take a dip in the SPARKLING POOL while relaxing with your favorite beverage. The home is energy efficient with SOLAR and SUNSCREENS. Don't miss your chance to own your move-in ready home in Sundance, BEING OFFERED FULLY FURNISHED. Sundance is your premier Active Adult Community in Buckeye. Enjoy your days either golfing, swimming, tennis, pickleball, working out in the fitness center and plenty of other social activities. The Sundance Golf Club features an 18-hole golf course, pro-shop, restaurant. Make Sundance your home today. Some of the home's upgrades include: Plantation shutters Upgraded irrigation system Upgraded lighting R.O System Upgraded baseboards Crown Moulding 100 gallon water heater Built in cabinets in the garage Epoxy garage floors Pool filter, 1 year old Golf ball Sunscreens Patio Misters Paver patio New refrigerator Washer 1 year old Fruit trees (lemon and lime)

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