3 Tips To Get A Self-Employed Mortgage Richmond Hill
The mortgage market in Richmond Hill can be skewed towards the salaried many. Self-employed individuals may find it hard to obtain a mortgage that has a competitive interest rate and decent premium.
Why are self-employed mortgages hard to get?
Self-employed is synonymous with “high risk” in the Richmond Hill mortgage market. The predictability of income is often less with self-employed individuals. Hence, the borrowers meet a higher set of requirements and a more stringent set of rules.
What can you do to get a decent self-employed mortgage in Richmond Hill?
While it may be hard to get a decent mortgage, it isn’t impossible. Here are 3 tips to help you get the mortgage you need.
1.Assess your finances
The first thing any lender or bank will want to go through is your finances. It is important to be prepared for this. Go through your finances, both personal and business, and compile them. Ensure you have relevant records for both.
While assessing your finances go over your debt to income ratio and understand your budget. This will help in finalising an amount for the mortgage and keep you from breaking the bank while trying to buy your dream home.
2.Hire a professional mortgage broker to help you find a lender
Searching for a lender may well be one of the hardest parts of the mortgage process. A professional mortgage broker can help you understand the multiple facets of obtaining a mortgage and even help reduce the amount of paperwork you will need to do.
Most experienced mortgage brokers have connections with a variety of lenders and can help you get better rates.
3.Be careful of your debt to income ratio before and during the application process
While you are looking for a mortgage, it is important not to pile on any debt to your existing financial setup. As a self-employed mortgage borrower, your application tends to be on the riskier side and if there is a recent strain on your debt to income ratio, it may push up your interest rate and premium.
Avoid buying a car, applying for a new credit card or a new debt program during and before applying for a self-employed mortgage in Richmond Hill can help you obtain competitive interest rates.
Self-employed mortgages can be a smooth process if the right professionals are enlisted and your finances are run over with a fine-tooth comb. It is also important to be patient during the process. Mortgage approvals are usually a long drawn out process as there are multiple checks and verifications to be done.
It does help to have a professional at this time to help you navigate the processes and handle the negotiations. Choosing a mortgage broker is also a crucial step for most self-employed mortgage seekers in Richmond Hill. Preparing yourself in every way can have a positive impact on the outcome.