It is commonly believed that it is nearly impossible for self-employed people to be approved for a home loan. This is not always the case. While there are a few complications that can arise when a self-employed person applies for a loan, there are certain precautions that can be taken to help ease the process.
When you’re self-employed, it can be very tempting to take advantage of the many tax breaks available to you. However, when a potential borrower’s taxes don’t show the required bottom line income, it can be hard to get approved for a loan. If you are looking to make larger purchases like a home, it is important that you take that into consideration when filling out your taxes. While you may be paying more, you aren’t limiting the amount you will be able to borrow.
Many good things come out of being self-employed. For starters, you can decide everything from dress code to working hours and how much you charge for your services. Unfortunately, not all aspects of being self-employed make it easy to be approved for a loan. Before you decide to take advantage of the multiple tax-write-offs you may qualify for, consider what that may mean for your borrowing potential.
For more information about how to get approved for a loan if you’re self-employed, please contact Simply Home Lending today.