Getting a mortgage for your home may be as simple as providing a pay stub and a job letter as two forms of requirements. Sure, there are other prerequisites right after that, but the laundry list of requirements for the typical employee is usually accessible and easy to accomplish. However, there is a different story when it comes to self-employed Canadians.
They will have to go through stricter measures to prove that they can pay the mortgage amount monthly. They will need to show their credentials and various validations to show that they are not a scammer hoping to get an easy score over the mortgage agent.
With that said, there are quite a few ways for you to prove that you are serious about the mortgage and that your stature of being self-employed will not affect your ability to pay on time. The following tips may just help you out in the long run:
1. Do Your Best to Improve Your Credit Score
Even with the roadblock of being a self-employed home buyer, you are still allowed to prove yourself through your credit scores. The thing about credit scores is that they will mainly reflect the habits and attitudes of the borrower. If you have a high credit score, it will say so much about your character as a person who never sleeps until they pay off all their debt, and neither are they lazy or laid back when it comes to their financial obligations.
Think about it, who do you think the lender will most likely vouch for? Is it the person who has a high credit score but has no definite corporate employer? Or is it the person that is traditionally employed yet, has a bad credit score that will scare off many lenders by nature?
2. Save All of Your Tax Records
A person who pays off all their taxes is trustworthy in all regards. While taxes can be challenging to work with, they offer the best for you to get in the good graces of lenders, especially if you are self-employed. If you have no debt with other lenders and the government, you will be able to prove that you can regularly pay without any form of hassle.
Government-implemented taxes tend to increase prices in one way or the other. If you can show the lender that you had no problem paying for that consistently, they may be impressed with your determination and attitude towards paying.
3. Establish Your Own Venture Well
Being self-employed has its perks, but it also means that you should handle all your transactions appropriately. You must not run your business to the ground—otherwise, it may give off a negative impression of you.
If the lender sees your motivation and leadership firsthand through your business records and sales figures, they will have no problem approving your mortgage on the spot.
These mortgage tips will not only improve your chances of getting a good mortgage amount but may also break the stereotype when it comes to self-employed home buyers. People who aren’t traditionally employed don’t always equate to people with common financial problems.
Some of today’s most successful entrepreneurs started small, pushing their businesses towards success with the right attitude and determination. If you can showcase that, along with the other tips that we’ve given above, you may very well be on your way to getting that well-needed mortgage approval.
If you are looking for a well-trusted mortgage agent in Ottawa to handle your mortgage application for you, look no further than Ottawa Mortgage Services. We also specialize in refinancing, pre-approvals, and debt consolidation, among other things. Contact us today and let us discuss your financial options.