If you are self employed or your job is commission based then it may not be possible to get a mortgage from the bank. Banks like people that fit in to their little mold of a good person to lend to. A mortgage broker has a large list of lenders and some are more than willing to work with entrepreneurs.
If you are capable of proving income for 2-3 years as a self employed person or on commission then we can take that to a lender and start working on getting you a mortgage. Here are a few things to think about when you are self employed or on commission and may be looking at a mortgage down the road.
- Claim all of your income. I know that sounds like you should be doing it already but sometimes there are cash jobs or tips that people do not claim on their income tax. This hurts you if you are trying to prove income. example: A restaurant server or bartender makes way more tips than they do wages. If they do not claim their tips on their income tax then when it comes to get a mortgage that income does not exist for the calculation and it is way harder to get approved.
2. Save up a down payment. Again this seems like a silly thing to bring up but it is helpful. If you work on commission you know that income can be great sometimes and not so great other times. When you make a large sale or commission put some of that away. it will add up fast if you are diligent and before you know it you will have a down payment for your mortgage.
3. Keep up to date with your financials. Running your own business is very fulfilling but can be very challenging. Keeping up to date on all of your financials, tax returns etc… is huge when you try to go for a mortgage. Before anyone will lend to you on a mortgage they will need proof that your taxes are at least up to date. Also while analyzing your income the better your books are kept the easier it is for you to provide income proof.
This is just a few things to think about when you are looking at getting a mortgage and you are self employed or on commission. These professions can be very lucritive but in certain cases like trying to get a mortgage, they prove a little challenging if you don’t have all your ducks in a row. If you have any other questions please click the contact us tab and lets chat.