It can be intimidating and even a little confusing to start the homebuying process when you’re self employed. If you are feeling this way and wondering how you will be able to finance a house while being self employed, you aren’t the only one feeling this way, and we want you know that we are here to make the process easy!
With the right lender, planning, and preparation, you’ll be in your dream home before you know it. Below are tips to help you prepare for a successful homebuying journey:
The mortgage process is made a little easier if you start preparing for everything early! When you decide to buy your first home, it’s best to start tracking your income, expenses, and savings. Most borrowers have W-2s that verify their employment history and income - you will need to document your own history. You can do this by keeping track of your tax returns, assets, and debts.
Keep it Professional
Your debt-to-income ratio (DTI) is a key factor in determining how much you can borrow for a home. If you have a business account, make sure you pay for expenses through that to avoid impacting your DTI in a negative way.
Check Your Credit Score
Credit scores matter for all buyers, but especially for those of you who are self-employed. Credit scores will be used for proof that you will be able to pay your loan. It’s typical to have a score of at least 600, better rates will be available as your score increases.
These few things will get you going down the right path when it comes to finding a home while you’re self-employed. Ready to officially get started? Find a loan officer near you!