If you are self employed you may be a little hesitant to apply for a mortgage in this new landscape of tighter lending standards. You’ve read the horror stories about borrowers with “near perfect” credit, solid jobs and a significant down payment being denied for a loan, so what chance do you have a small business owner or freelancer?

At AmeriFirst we want you to know you have just as good of an opportunity to own a home as anyone else. While our solid lending standards have remained the same for the past 25 years and we analyze both numbers and scores we also delve deeply into the individual in order to put you on the right path to successful home ownership.

Borrowers who are self employed may have to jump through a few more hoops and furnish additional paperwork to provide proof of income, however knowing what to supply will take the guesswork and headaches out of applying.

Before you apply, check your credit report to ensure it accurately reflects your financial activity. Old debt and errors can negatively impact your score, so it is imperative you ensure it tells your past and current financial story. You can get a free copy of your report from all three bureaus from www.annualcreditreport.com. The free version will not give you a credit score (it’s available for a small fee), but you can at least check to make sure that the items on your report are correct.

Once you know where you stand in terms of your credit report, gather the necessary paperwork and information needed to apply. Consult with your AmeriFirst loan professional before and throughout the application process and be sure we’ve fully answered all of your questions.

If you are self employed, consider these steps when applying for a mortgage:

• Collect tax returns and W-2’s to demonstrate income and employment. Consider including a few invoices from clients and ask your clients to write a letter of recommendation, letting us know about what kind of vendor you’ve been.
• Show a consistent borrowing track record. Furnish documentation from previous loans demonstrating that you’ve made timely payments in a satisfactory manner.
• Provide a 20% deposit. Having a 20% down payment for your home provides additional proof that you can successfully manage your money.

If you’ve been on the fence about homeownership, don’t delay. Although rates have been holding steady at record lows, economists predict that an increase is inevitable. Rates and home prices are at rock bottom so now is the time to act.

We can assist you with making your dream of homeownership a reality and are ready to help. For more information about how you can get started on the application process call us at 800-466-5626 or begin the application process now.

Source: http://www.shuddup.com/featured/how-to-get-a-mortgage-if-youre-self-employed.html