The very nature of how we work has changed. Where we work. Even when we work. More and more Americans are making the executive decision to go on their own, trading the predictability of full-time employment for the freedom and flexibility working as an independent contractor, or a freelancer. For many, that means jumping into the so-called “gig economy” with both feet, driving for Lyft, Uber, Doordash or Grubhub as a primary means of income.
While the benefits of such a lifestyle change are numerous, things can get very complicated for freelancers looking to secure or refinance a mortgage. Why? The biggest hurdle to clear is the irregular income associated with self-employment. Banks still consider loans to independent contractors as a risky bet. But fear not! With the proper preparation and planning (p-p-p-p-p-p), you can make securing the mortgage you both want and need a less painful process.
Before you apply for a loan, take the time to get all of your financial documents in order. Those include profit and loss statements, tax filings, etc. The goal here is to show a potential lender that your business is both profitable and sustainable, lowering the risk associated with lending to a freelancer.
Save up for a big(ger) down payment.
It’s simple, really: The more you can put towards a down payment, the smaller the loan. And the more a lender is willing to work with you.
Bolster your credit score.
Carrying a good credit score can mean the difference between securing a good mortgage rate and a great one. Pay off all of your bills on time, pay off the balance on your credit cards if possible, and don’t open new lines of credit before trying to secure a mortgage.
Get an approved loan before looking
This step serves as the framework for what’s possible in buying a new home. When you have a secured loan in hand, you know how much you can afford. It’s a helpful filter when looking for a home, saving you the stress and disappointment of going beyond your budget.
Give Aslan a call!
There’s more to the process, of course, and any one of our trained loan officers would love to help you find the optimal lending solution for you and your family. Let’s kick-off the conversation.
To get started, call 720-897-1525 or apply online at https://www.aslanhlc.com/