Mortgage For Self-Employed!

Brandon01 | Nov 17, 2017 | 1 posts since 2017

Hi,

I am self-employed and planning to buy a home. I am in search of mortgages for self-employed. Does anyone know the details of mortgages available for self-employed people?

I did research on the internet and I have several doubts about this.

What are all documents required for the application for a home mortgage?

What are the formalities to be followed to get approved for a mortgage?

My credit score is around 650. I hope it is a fair score. But is it easy to get approved for this score? Or is it compulsory to have a score greater than 650?

And can you suggest me the brokers whom you are familiar with and those who offer a mortgage at a lower rate?

I came to read Northwood mortgage reviews ( http://www.mortgagesmortgages.ca/ontario-brokers/northwood-mortgage/review/ ), but I haven't heard about them before. So, please help me with your suggestions. Thank you.

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Answers

Bozo | Nov 18, 2017 | 1,375 posts since 2011

Not sure I have good news. Back a few years ago, my wife and I went to re-fi when rates were in the 3.4% range, no points. Stellar FICO score, pristine balance sheet. I was retired, my wife was still working. The loan officer candidly admitted that it was hard for retirees to get loans. He could count only my Social Security payments, her income, and our interest and dividends towards qualification.

We did qualify, got the re-fi, then paid it off in a couple of years. Self-employment might well be a major obstacle, along with the FICO score. Be careful out there. Some lenders are more than happy to lend to you, thinking you will probably default, and they'll snag the property.

Ally6770 | Nov 18, 2017 | 4,293 posts since 2010

My youngest son was a self employed musician and had a small recording studio in Nashville. Pen Fed was able to refi his home when it was in the 2%'s and he went down to a 10 or 15 year loan.
If you have steady income from your self employment no debt and a good credit score I think there is a way for a loan.

Ally6770 | Nov 17, 2017 | 4,293 posts since 2010

I think you need to add 100 points at a minimum to your credit score before you would get a decent mtg rate.

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