The Succinct Guide to Landing a Mortgage as a Freelancer

Guest post by Karyn WinrichOwning a home can be a dream come true, but the path to getting there isn’t always straightforward. And that’s especially the case for those whose income isn’t based on a traditional nine-to-five job.Applying for a mortgage as a non-traditional employee can feel overwhelming, but it’s certainly possible if you plan, prepare, and pursue sound guidance along the way. Below, Daly Appraisal Services walks you through everything you need to know about getting a mortgage as a freelancer or contract employee. So buckle up, and start making your dream a reality!Know How To Win Over LendersLenders tend to be more selective with freelancers, so you need to understand the intricacies of winning them over.

• Gather your pay stubs, tax returns, bank statements, and any other documents that demonstrate your financial stability. Being prepared will impress the lender and make the process smoother.
• Make sure you’re paying your bills on time, not applying for new credit, and keeping your credit card balances low. Lenders look for borrowers with good credit scores because it assures them that they’ll repay the loan.
• Save up a high down payment to show lenders that you’re serious about the investment. A good down payment will also demonstrate financial responsibility and reduce the loan amount.
• Don’t just settle for the first lender you come across. Take time to research and compare rates and fees until you find the best deal!

Take Extra Steps as a FreelancerAs discussed, freelancers and contract employees often have a more difficult time getting a home loan. Here are a few ways to boost your prospects:

• Get a mortgage broker to help you find lenders who specialize in working with self-employed individuals. They can guide you through the process and give you valuable advice on getting approved for a mortgage.
• Start setting aside a percentage of your income each month for your home purchase. Stay consistent, and watch your savings grow!
• Save money on taxes and protect yourself from potential liabilities by establishing an LLC for your business. Learn how to form an LLC in Massachusetts, and apply the savings to your house budget.

Be SmartReady to navigate the homebuying process like a pro? Here are four general tips to help you along the way:

• Spend time researching the housing market in your desired area to get a feel for the trending home prices and upgrades.
• Don’t forget about additional expenses. It’s not just the mortgage payment you need to consider when buying a home; be sure to factor in expenses like closing costs, maintenance costs, and property taxes.
• Find a real estate agent who knows the local market and who you feel comfortable working with. Along with guiding you through the process, a good agent will negotiate effectively on your behalf.
• Remember that unexpected expenses can arise during the home-buying process, so prepare to be flexible and adaptable. Keep your end goal in mind and stay positive!

Owning a home is one of life‘s biggest milestones, and it’s well within reach whether or not you fit the mold of a traditional employee. You can approach the mortgage application process with confidence and clarity by implementing the tips outlined above.Remember that it all starts with doing your research, going the extra mile, and making smart decisions. Take that first step today, and you’ll be a homeowner in no time!