09:01 22 June 2013
A lot of people have this notion that self-employed individuals do not have a shot at getting their mortgage loan approved. They say that this is because lenders may find these individuals risky as there is no employment security.
This notion isn’t exactly right. With the huge number of self-employed individuals these days, there are a lot of lenders who are more than happy to get their business. In order to approve the mortgage loan, a self-employed individual must give the lenders an assurance that making monthly repayments for the next say 25-30 years wouldn’t be a problem.
Provide the lenders with documentation that will prove that your salary is stable and that you have the ability to meet monthly repayments no matter what happens.
Having a savings account and great credit history will surely help. Giving collateral can also be an option. Just keep in mind that with this kind of mortgage, the interest rate may be generally higher.
Lenders will calculate interest rates based on the risk that they’re taking in lending the money to you. Without job security, they are most likely to charge you higher compared to those who are employed.