If you’re an independent contractor or freelancer who needs a mortgage, you’ll probably be surprised to learn that not every lender or broker wants your business, despite your having a high income. The good news is that there are specialized brokers who deal in nothing but contractor mortgages. They are able to package your loan application in such a way that you’ll have a better chance of being approved.
These brokers help freelancers find the mortgage that’s just right, with favorable terms and interest rates. Contractors use these specialized brokers because they make the application process easier. Some places actually ask contractors to provide up to three years worth of accounts. Not only does this probably not reflect your actual earning, it’s more than they would ask from any other applicant.
A mortgage contractor adviser can be invaluable when you’re looking to purchase a home. Why not find out how much you’ll be able to borrow before looking at houses. You won’t be wasting your time looking at homes you can’t afford, plus you’ll be in a much better position to haggle on the prices of homes you can afford.
These days there are a lot of benefits in being a contractor. This type of working arrangement has made it possible for people to have flexible work schedules so they can care for children or aging parents. Imagine quitting your job you’ve held for years in order to work even harder as a contractor just you you can spend time taking care of your aging mother. Admirable, but not to some lenders. They act as if you somehow are unreliable, a greater risk simply because you chose to work as a freelancer when the fact is you probably have more experience in your field than most and could easily get a job anywhere.
Traditional, full-time employees are presumed by some lenders to have secure, steady employment but we know this isn’t the reality. How many people do you know that have been made redundant who thought they had a steady job for the rest of their lives? Full time, non contract work is no longer a guarantee of lifelong employment. It’ high time lenders realized this. Fortunately, some lenders do see that just because someone works as a contractor, it doesn’t mean they can’t make monthly payments each month. Most freelancers already make regular monthly paynents for rent, utilities, and the like, a mortgage is no different.
A contractors mortgage is easily within reach if you head to a specialist first. Of course there are still qualifications to be met. You’ll have a better chance of obtaining a favorable contractors mortgage the longer you have worked as a freelancer All lenders have tightened their belts, not just those lending to contractors. The credit crunch made it harder for everyone to obtain a mortgage regardless of how they earn their money. Contractors shouldn’t expect any special treatment but they should expect to be treated fairly and not looked upon as unreliable simply because they chose to work for themselves.