QuinnCorp Real Estate
  • HOME
  • SERVICES
  • PROPERTY SEARCH
  • BLOG
  • CONTACT US
  • HOME
  • SERVICES
  • PROPERTY SEARCH
  • BLOG
  • CONTACT US

5 Tips for Buying a Home When You Work For Yourself

8/8/2017

0 Comments

 
Working for yourself has a lot of benefits. You can enjoy a flexible schedule, control your income and do what you love. But there can be some downsides too. When you’re ready to buy a home but you work for yourself or work as a freelancer, you may find it harder, but not impossible, to get approved for a mortgage.

Here are 5 tips to help you get buy a home as a freelancer:

Be Organized
If you own a business and have one stream of income, this should be easy for you. However, if you work more a gig structure with multiple sources of income, organization is absolutely crucial. You will need to track down proof of employment and income, references, previous employers and landlords. It’s going to be quite the pile of documents, but it will make your life easier in the long run. You will need to convince a lender to loan to you, unlike W2 employees who have pay stubs to show. The more you have to prove you are a safe person to lend to, the better off you’ll be.
Picture
Calm Down on the Deductions
Being self-employed gives you the opportunity to make deductions on your taxes, and a lot of them. But when it’s coming time to buy a home, calm down. Deductions subtract for your actual profit making it look like you’re worse off than you are. Think ahead and instead of claiming every deduction this year, let a few go so you can look better on paper and buy the house you want.

Pay Off Debt
Debt is never a positive when it comes to buying a home, but if you’re carrying a lot of debt and are self employed then you’re not doing yourself any favors. Before talking to a lender start paying down your debt. Your debt to income ratio is one of the main factors in getting approved for a mortgage, so lower your debt while you can.

Talk to a Mortgage Banker
The reality is, until you sit down with a mortgage banker or broker you won’t know what hurdles are in front of you. After you do your own due diligence, sit down with a lender to see what else you need, or if you’re in good shape. You may find you’re qualified for the amount you were hoping with all the deductions you would normally use.

Hire an Accountant
At the end of the day, an accountant will make your life easier in a myriad ways. Having organized financial data saves you time and makes it easier to present your income to a lender. An accountant will be able to balance your deductions and your income in a way that’s best for you. A good accountant is really worth every penny.

If you’re self-employed and ready to buy a home, we can help! We have a great relationship with a mortgage banker who is able to work with all kinds of buyers. Get in touch today.
0 Comments



Leave a Reply.

    Author

    Write something about yourself. No need to be fancy, just an overview.

    Archives

    February 2019
    January 2019
    December 2018
    November 2018
    July 2018
    June 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016

    Categories

    All
    Buyer
    Homeowner

    RSS Feed

GET STARTED
303.807.7688 | ed@edquinnsite.com | © 2016 Quinn Corp
Picture