3 Things Real Estate Experts Tell a Self - Employed Home Buyer
June 4, 2020
Nearly 20% of all income earners in Canada being self-employed (at least part-time) and how difficult for this growing demographic to obtain a mortgage. The first issue is the fact that income is not always easy to prove. Also, many business owners are motivated to expense as much as possible in order to minimize their taxes payable, which is something many lenders do not recognize. Having said that, it's critical to apply for a mortgage before shopping for a home because a mortgage pre-approval is an essential first step. When the mortgage broker gets your mortgage pre-approved, it means you can:
1. Save Time by Looking at the Right Homes
This makes sense because you'll save time by checking out homes you can actually afford to buy instead of falling in love with a property that's above your budget.
2.Spend More Time Examining the Right Homes
By decreasing the inventory of homes to those that fit your parameters, you can allot more time to thinking about all the little nuances each home has to offer. Many first-time homebuyers never move past the price point when sorting out their preferences, but now you can devote your energies to looking at the little things that matter the most to you such as whether your SUV will easily pass through the overhead space in the garage or smash into the microbeam.
3.Gain Confidence and Avoid Disillusionment
Sellers will be more likely to immediately accept your offer, even if that offer is for less than list price because you are giving the sellers peace of mind that her home is sold. They can take her home off the market and place it into pending status with confidence that the buyer is qualified to obtain a mortgage loan.
Besides, because it is difficult to navigate which lenders specialize in self-employed mortgages, or have more favourable terms for the self-employed, this is one case where using a mortgage broker has obvious advantages. Mortgage brokers have access to multiple lenders and have a broad knowledge of the mortgage market. Therefore, a broker can connect you to the lender most suited to your situation.
Let us help you with your next mortgage. We are experts in Mortgages for Small Business Owners and Self-employed and Second Mortgages. Please feel free to contact us.