subject: How to Get a Mortgage If You Are Self – Employed [print this page] How to Get a Mortgage If You Are Self Employed
Mortgage is usually referred as the loan against the property. Mortgage is provided by the bank or mortgage agency. For the banks the ideal employee to give the mortgage loan is the one who is indulge into any job. Mortgage agency wants to see the customer who has a regular and steady source of income so that borrower can easily pay the installments on time. Someone who is self- employed is not preferred as the ideal borrower of the mortgage loan. Self employed is the less eligible customer for the mortgage loan, although bank offers mortgage loan to the self employees however it needs lots of supporting document that satisfies the bank or the mortgage agency that you are able to pay the installment of the bank on time. The main drawback of the self-employed mortgage loan seeker is that banks usually charges high rate of interest for the self employed customer. If you are the one who is looking for the mortgage loan you have to prefer the bank that has a good track record in providing a mortgage loan to the self employed customer. If you are going to approach a bank for the mortgage loan at the very first place ask the bank associate to give the detail of the possible document that is needed by the bank. It might be possible that you might not be an ideal borrower for the bank then you have to work more in finding the bank that can lend you the loan.
Banks are less interested in providing the mortgage loan to the self-employed due to the following reason:
Self-employed customer does not have the proper proof of their annual income.
Low tax returns showing in the form 16 of income tax return.
The evaluation of the property customer have is lower than the loan expected.
How to get a mortgage if you are self-employed?
For the self employed customer's who have their own business here are few tips that will help you in grabbing the best mortgage loan:
If you are opting for the loan against the property it is advisable to produce the copy of registration of the property along with that it needs a copy of the property tax paid by the owner.
Insurance policy is the most sought after document that bank is always looking for as it acts as the guarantee if some thing happen to the borrower the lost will be paid by the insurance company.
It is advisable to pay the maximum tax applicable, so that after examine the document bank would be able to analyze the financial status of the candidate.
Always transact the money continuously so that it reflects in your bank statement. Always take a note of it that no cheque is bounced in your banking as it shows your banking in a negative light.
