Select Page

Mortgage Application Resources for Independent Contractors

j

by David Wilcox

}

06.29.2021

If you’re a freelancer or independent contractor getting ready to buy your first home, you might be confused about how to approach the mortgage application process. Homebuyers who are not employed in traditional jobs may not know what information lenders need from them. Whether you’re thinking about seeking assistance from a real estate lawyer or you’re wondering how to prove your reliability to a lender, these resources from Davids Home Loan have got you covered!

 

Special Considerations 

As an independent contractor, you’ll need to take extra steps to prove that you can make mortgage payments. 

  • Showing lenders a history of steadily increasing income is beneficial, so create a plan to boost your profits in the coming months.
  • Approach your clients about negotiating long-term retainer contracts – this will stabilize your future income, which lenders will appreciate.
  • Consider forming an LLC to secure special tax advantages and establish your legitimacy as a professional.
  • Carefully organize your invoices, receipts, 1099 forms, and any other important financial documents that you’ll need to demonstrate your income.

Prepare Your Finances 

Every homebuyer will need to focus on achieving financial stability before house hunting, and these resources will be especially useful for contractors! 

  • You’ll need good credit to get a mortgage, so it’s time to focus on raising your score!
  • Paying off debt while paying your mortgage can be tough. Prioritize paying down your debts now to improve your mortgage application.
  • Aim to save up for a 20% down payment so that you can avoid paying private mortgage insurance.

The Homebuying Process 

Finally, you’re ready to start shopping for your perfect home. Here’s how to get the keys. 

  • Before you begin looking for a home, get pre-approved for your mortgage and compare lenders to get the best deal.
  • Make sure that you’re prepared for all of the tasks outlined in this guide, from determining your budget to negotiating an offer.

As a freelancer or independent contractor, you’re used to navigating complex financial situations. Applying for a mortgage may require some extra effort on your end. But once you’ve closed on your dream home, you’ll know that all of your hard work was worth it!

 

Photo via Pexels

Featured

Related Posts

Follow Us

Comments

0 Comments

Related Posts

March Madness in Oregon & SW Washington: A Home Buyer’s Guide!

March Madness in Oregon & SW Washington: A Home Buyer’s Guide!

As the end of winter draws near, so too does the start of March Madness in Oregon and Southwest Washington! With so many homes to choose from, it can be difficult to make a decision. Luckily, this buyer's guide has all the information you need to make the perfect...

Home Sweet Home: Time to Buy Now!

Home Sweet Home: Time to Buy Now!

The words "home sweet home" evoke warmth and joy - and with the current market conditions, now is the perfect time to turn that dream into reality! Whether you're a first-time homebuyer or looking to upgrade your existing abode, there are a few things to consider...

Spring into Home-Hunting Success: 2023 Tips!

Spring into Home-Hunting Success: 2023 Tips!

Spring is in the air and the home-hunting season is starting to heat up! Every year, house-hunters take the plunge into the real estate market in pursuit of the perfect property. But the process of home-hunting can be daunting, which is why we’ve compiled these 2023...