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.

Click Here to See What Your Home is Worth

12926 W Beechwood Drive Sun City West, AZ 85375

$449,000
3 Beds
2 Baths
2,454 SqFt
Status Active
MLS # 6635070
Property Type Single Family Residence
Price Type --
Don't miss this desirable Castillo model now on the market. This 3-bedroom, 2 bath split bedroom floor plan has a great deal to offer. Laundry has been moved in from garage adding square footage and an office/craft area. No popcorn ceilings and no carpet in this house! There's plenty of outdoor living space with the front courtyard and the back covered patio. Back yard provides exercise & relaxation in one with its ''Endless Pool'' & Hot Tub combination! Located in the heart of Sun City West, this home is close to shopping, restaurants, golf and Rec Centers! Own this great home and begin enjoying all the amenities of Sun City West!

4685 N Sheridan Lane Prescott Valley, AZ 86314

$449,000
3 Beds
2 Baths
1,554 SqFt
Status Active
MLS # 6636206
Property Type Single Family Residence
Price Type --
Welcome to your new home in Prescott Valley's sought-after Unit 20! This 3-bedroom, 2-bathroom gem offers ultimate privacy, set back from the road, and has no HOA!! Recent exterior paint adds a fresh look. Inside, you'll find a spacious and comfortable living space, ideal for family gatherings. The kitchen is well-equipped, and the three bedrooms provide the perfect comfort. The master bathroom has been completely remodeled to include a walk-in shower. Enjoy the tranquility of the backyard and the great views of Mingus Mountain. Don't miss this opportunity because it will not last long. Contact us now!

7009 E Acoma Drive Scottsdale, AZ 85254

$449,000
2 Beds
2 Baths
972 SqFt
Status Active
MLS # 6636670
Property Type Apartment
Price Type --
Location, location...Beautiful end unit with Private Garage. The Exclusive Plaza Residences offers resort style living in the upscale Kierland Quarters area of Scottsdale. Walking distance to Kierland shopping, fine dinning, parks, walking/biking paths, golf, Scottsdale Airpark & much, more...Condo is close to well appointed club house, fitness center, game room, lap pool & spa. New flooring & A/C unit installed within the last few years. Located in a very quiet area. Condo offers 2 spacious split master bedroom suites. inside laundry, fabulous open floor plan, fireplace, large Balcony with storage area. Modern well appointed kitchen with granite counter tops, stainless appliances. The condo also has one of limited garages. ''Keep car out of the hot sun and protecte 2 hours notice for showing.....occupied condo

515 W Atlanta Avenue Phoenix, AZ 85041

$449,000
4 Beds
2 Baths
1,780 SqFt
Status Active
MLS # 6641462
Property Type Single Family Residence
Price Type --
Back on Market! Minutes from Downtown Phoenix! Beautiful new 2023 Build with no HOA, RV Gate and an inside laundry room! Home was built in 2023 and is a true Gem. This home has an open floor plan with a large kitchen that has an oversized island and breakfast nook. This home has 4 spacious bedrooms with all the bells and whistles. There are several new builds being built in area and area is going through a gentrification process. Location is perfect just minutes to downtown, airport and all the great restaurants south Phoenix has to offer. this home will not last bring your buyers today! There are multiple new builds being built in surrounding area. Act Fast! Easy to show!

Leave a Reply

Your email address will not be published.