Being self-employed certainly has its perks; it also has its disadvantages. Buying a home or refinancing your mortgage is proof of this. Most major banks require a slew of paperwork which is not easy to produce. Providing proof of income when you are self-employed can be difficult and in some cases impossible.
Using a mortgage broker experienced in financing self-employed clients can save a lot of anguish. An veteran mortgage broker will know what mortgage lenders will require in advance and if you are unable to provide certain documents they will work to find a lender that will be forgiving of your circumstances, make an exception or find another way of proving what you are trying to show them.
Using write-offs to lower your income is an effective way of saving on paying income tax, however it makes it more complicated to get a mortgage or refinance an existing one. Major Banks and their respective insurers want to make sure that you can afford to make your payments. It is hard to ensure that you can, if your income tax statements (notices of assessment) say that you don’t make enough money. A good mortgage broker understands and can analyze how you can utilize your write-offs to qualify for financing. Just because you have taken advantage of a tax reduction does not mean that you should suffer in other areas and we are here to ensure this does not happen.
Besides being hard to prove income it is also hard to prove consistency. When you are applying as a self-employed client, most financial institutions want to see that you have several years of income that is not fluctuating. For anyone that is, or ever has been self-employed you know that you can have years where you earn exceptional income and years where you seem to just barely survive. An experienced mortgage broker can help you bridge the gap between your most lucrative years and your less productive ones. We all have ups and downs in our lives and just because you are in a slump does not mean that you are beyond help. Reaching out to refinance in a time of need can be exactly what you need to get back on track. Sometimes even the most successful businesses in the world need to restructure at one time or another.
Being self-employed can be a roller-coaster ride at the best of times and there are lenders out there that realize this. There are a lot of alternative lending institutions who are in direct competition with the major banks and poised to scoop the clients that they let fall through the cracks because of minor transgressions. Knowing who they are and how they work can best be accessed through an experienced broker.
So whether you are a self-employed entrepreneur looking to get a secured line of credit, a waitress who can’t prove tips or a well established self-employed business type looking to create liquidity, we can help. Call today, toll-free and stop worrying about the paperwork and let an expert handle your situation: 1-855-668-3074!