When it comes to getting a mortgage, there are many factors that lenders consider before approving an application. One of the most important factors is the borrower’s income and employment history. For self-employed Mortgages, this can be a bit more complicated as lenders often require a longer period of self-employment before they will approve a loan. So, how many years do you have to be self-employed to get a mortgage?
The Requirements for Self-Employed Borrowers
When it comes to getting a mortgage as a self-employed borrower, there are certain requirements that must be met for the loan to be approved. Generally speaking, lenders will require at least two years of self-employment before they will consider an application. This is because lenders want to see that the borrower has been able to maintain their income over time and that they have been able to pay their taxes and other expenses associated with being self-employed.
In addition to this, lenders may also require additional documentation such as tax returns or bank statements to verify the borrower’s income and employment history. This is especially true for borrowers who have only recently become self-employed or who have had gaps in their employment history.
The Benefits of Being Self-Employed Longer
While two years is generally the minimum requirement for getting approved for a mortgage as a self-employed borrower, having more than two years of consistent income can be beneficial when applying for a loan. The longer you have been self-employed, the more likely it is that you will be able to demonstrate your ability to manage your finances and make payments on time. This can help increase your chances of being approved for a loan and may even result in better terms or lower interest rates on your loan.
Tips for Getting Approved Quickly
If you are looking to get approved quickly for a mortgage as a self-employed borrower, there are some steps you can take that may help speed up the process. First and foremost, make sure all of your paperwork is up-to-date and accurate so that lenders can easily verify your income and employment history. Additionally, make sure you have enough money saved up for closing costs and other fees associated with getting approved for a loan so that you don’t run into any unexpected expenses during the process. Finally, work with an experienced lender who understands the unique needs of self-employed borrowers. Contact our Airborne team to help guide you through the process quickly and efficiently.
Getting approved for a mortgage as a self-employed borrower can be challenging but it is possible if you meet certain requirements set by lenders. Generally speaking, most lenders require at least two years of consistent income before they will consider an application but having more than two years can be beneficial when it comes time to apply for a loan. Additionally, make sure all of your paperwork is up-to-date and accurate so that lenders can easily verify your income and employment history. As well as having enough money saved up for closing costs and other fees associated with getting approved for a loan, so that you don’t run into any unexpected expenses during the process.