Securing a mortgage can seem like an overwhelming process, especially if it’s for someone who is self employed or a contractor. Many feel like they will never get approved, which is why so many never apply.
While it can sometimes be a little more challenging to get a mortgage as a contractor, there are many options available that can make the entire process easy and worry-free.
Go Over The Budget Carefully
One of the most important things when looking at mortgages for IT contractors is that there will be a low or no risk of default or missed payments. The lower this risk, the easier it will be to get a mortgage in most cases.
To determine the risk, many first look at the overall budget for both work and personal expenses. Ideally there should be ample funds for all of the expenses, including the mortgage payment, as well as reasonable surplus for emergencies or savings.
If the margins are very tight, then it may be a better idea to either put more money down up front, or wait until business is better before trying to take on additional expenses.
Those how find that their budget easily allows for the additional expense can then take the next step and start the process of securing a mortgage in order to purchase their new home.
Gather Paperwork And Documents To Save Time
All reputable lenders will need at least a few types of documentation in order to grant IT contractor mortgages. At minimum they will need to see at least three months of bank statements showing recent earnings, and any recent contracts for work.
Three months of bank statements is sometimes sufficient for getting a mortgage, but keep in mind some lenders may require additional records. If this is the case, then tax records or additional bank statements may be necessary.
Recent contracts are a common requirement as they show proof of employment, and also show the rate of pay and duration. From these, it is possible to form an average expectation of income, making it easier to calculate how much can be borrowed for the mortgage.
One thing to keep in mind with this is that the calculations are typically based on an estimation of expected income. Actual income may be higher or lower than this amount, which is why contractors should always verify that their budget can be adjusted higher or lower as needed.
If the income is found to not be sufficient, there are still ways to work around it. In most cases, it will be advised to either put a larger amount down for the home, or wait until the income has increased.
Consult A Professional For Help
The best way to secure any self employed mortgage is to seek out a professional who is experienced with the application process. These professionals often know the best way to prepare the mortgage application in a way that will get the desired outcome.
Professionals can also be a wonderful resource for those who may have questions about their situation, such as how much they need to put down, how much the payments will be, or whether they can borrow a slightly higher amount.
Keeping these things in mind often makes securing mortgages for IT contractors a very easy and simple process. The important thing with it is to be patient, and to go over all of the information carefully as it is a big commitment and responsibility.
John Yerou is MD of Freelancer Financials which specialises in Contractor Mortgages.
Best Places To Visit In The North Of England
If you live in England, you will know there are many different places to visit for the weekend. There are...
Green Home Improvement Ideas
In a world where environmental concerns are growing, the concept of “green” has gone beyond a trendy catchphrase and is...
How to Host an Unforgettable House-Warming!
The time has finally come. You have moved into your dream pad, and are officially adulting in your very own...
A Guide to Parking Lot Striping
The journey to a well-striped parking lot begins with the right paint. In this brief guide, we’ll unravel the mystery...
Business Tips For Protecting Your Finances During A Recession
In 2023, taking the necessary steps to protect your finances for your business is now more important than ever. The...
Tips For Cleaning Your Trainers
If you’re into your trainers and streetwear, you’re likely to be very conscious of keeping them looking their best! So,...
Branding Trends For Start-Ups in 2023
Branding is incredibly important as it impacts how your business reaches and connects with its target market. If you’re branding...
Avoiding the Wrong Kind of Growth
Growth is vital for any business – some models, like tech start-ups, are built around periods of dramatic, explosive growth...
How To Become A Property Developer
There are several reasons why an individual will want to become a property developer. One of the main reasons for...
What Is The Difference Between Cyber Attacks and Cyber Threats?
If you own a business that uses the cloud to manage workloads, you have probably heard of the terms cyberattack...
3 Types of Marketing Every Small Construction Business Should Do
Construction is a very saturated sector, whether you’re a large or small construction company, so marketing should be at the...
How Relevant Life Insurance Plans Can Future-Proof Your Business
Last year, UK inflation reached the highest level that it had been for decades. The markets became unsteady and nervous...
In a Car Accident? Here’s How to Find a Great Lawyer
If you’ve recently been in a car accident, you know that it can be an overwhelming experience. Not only do...
Considering Therapy? Here’s a Few Common Therapy Techniques Explained
If you’re considering therapy as a means to improve your mental health, you may be curious about the type of...
Top 5 Home Repairs You Should Never DIY
DIY home repairs are all the rage these days. But before you jump on the bandwagon, there are some things...
Tech9 years ago
Creating An e-Commerce Website
Tech9 years ago
Design Template Guidelines For Mobile Apps
Business4 years ago
What Is AdsSupply? A Comprehensive Review
Business8 years ago
The Key Types Of Brochure Printing Services
Law3 years ago
How Can A Divorce Lawyer Help You Get Through Divorce?
Tech6 years ago
When To Send Your Bulk Messages?
Tech3 years ago
5 Link Building Strategies You Can Apply For Local SEO
Travel11 years ago
Who Else Wants Also Nfl Hat