Mortgages for the Self-Employed

If you’re self-employed and are looking to buy a home, obtaining a mortgage can be a bit trickier as income can often vary as a freelancer.  Since lenders evaluate income to determine eligibility, self-employed individuals may have a tougher, albeit certainly not impossible experience when applying for a mortgage loan.

Although income is a major component in determining eligibility, having a good credit score is even more important, regardless of whether or not you are self-employed.  If it’s possible, try and have a score of at least 750.  You can do this by making sure that all of your bills are paid, and paid on time.  During the application period, avoid making any major purchases.

A good way to appease a lender and reduce your odds of being considered a risk because of fluctuating income is to make a large down payment.  The larger the down payment, the fewer chances a lender has of losing money if problems arise in the future.

The more assets you have, the more a lender will be at ease.  These assets can be something like a savings, retirement, or brokerage account.  If you happen to have any business or personal properties that have been paid off, that can also help tremendously.

This update is brought to you by the Kawas Team, specializing in Miami Beach luxury homes.  The Kawas Team can help you find the right property.  If you would like additional information on pre-construction sales, call 305.608.6681 to speak with an expert.  Visit our website for information on the many new projects throughout the many Miami luxury neighborhoods and beyond.