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Mortgage Options for Self-Employed Individuals – Know Before You Avail

A mortgage is always a viable financing option if you need significant funds. However, for self-employed individuals, it can feel more complicated. Unlike salaried employees with a predictable income, self-employed individuals do not have proper financial security. With additional scrutiny and proper guidance, you can arrange for mortgage options. However, you should contact a professional mortgage advisor in Stamford if you’re self-employed.

How can you boost your chances of getting a mortgage approval?

Since being self-employed will make it difficult for you to improve your chances of getting a mortgage, as an applicant, you need to keep a few tips in mind. These strategies will help you boost your chances of approval.

1. Keep your accounts and statements updated
Since you are not professionally hired, you must keep the accounts in place and updated with every transaction for a smooth transitioning process.

2. Keep a large deposit to reduce the risk
If you have a bigger deposit, the lender’s risk minimises, increasing the chances of mortgage approval.

3. Keep an improved credit score.
Ensure a good credit score if you want the mortgage process to work smoothly. Pay off your debts, avoid making late payments and check your credit reports for errors before applying for the mortgage.

4. Keep your paperwork ready.
Before applying for a mortgage, gather all the accounting and financial statements and papers, such as the tax return file, business accounts and bank statements, and proof of regular income. This will make the process easier.

5. Hire a professional mortgage advisor.
Since the case of being a self-employed individual is different from that of a service-based professional, they need to contact a professional mortgage advisor for help. They will check the financial statements and understand the current economic situation to make the mortgage process more manageable and smoother.

Having an advisor will also help you explore more flexible mortgage options. They will know the best lender to approach who offers mortgages to self-employed individuals. Since it becomes riskier to lend to self-employed people, the number of rejections is high. With the help of an expert advisor, you can find the right person and get a mortgage without any hassles.

For proper mortgage advice, get in touch with DavidList Mortgage Consultants Ltd. We take pride in offering personalised services tailored to your individual financial needs.

A mortgage is one of the most crucial financial decisions. Are you planning to opt for a mortgage? Planning it rightly is essential. Accurate planning helps identify potential financial risks and navigate them smoothly, and only a mortgage advisor in Spalding can assist you with this. If you are wondering whether it will be the right decision, you might be influenced by common misconceptions about mortgage advisors. Clearing them is mandatory to prevent missed opportunities, costly mistakes, and to make informed decisions. 

What Are the Common Misconceptions Regarding a Mortgage Advisor in Spalding?

Myth 1: Mortgage Advisors Are Expensive 

  • Fact: Mortgage advisors charge the lenders, not the borrowers. It means you don’t need to pay the advisor and can get the work done for free. The bank or the individual you are taking money from will pay the mortgage advisor. Additionally, most of the time, the advisors receive commission only; they do not charge separately. 

Myth 2: They Recommend A Fixed Lender 

  • Fact: Independent mortgage advisors maintain a list of lenders, including specialists. As a common citizen, you can access these specialists, and they only work with the advisors. Connecting with these dedicated mortgage specialists allows you to take advantage of special offers and tailored packages, leading to flexible interest rates. 

Myth 3: Working With A Bank Makes the Process Easier 

  • Fact: Working with a bank is less time-consuming because they only share their offers. Banks do not extend the offers of other lenders. Therefore, you don’t get the chance to compare it; it’s about closing the deal faster. However, eventually, it leads you to significant losses. You might pay higher interest rates. 

Myth 4: All The Advisors Offer the Same 

  • Fact: There is a wide range of advisors, including those for adverse credit, remortgaging, and high-value loans. You need to connect with an advisor who caters to your interests. The level of experience and expertise controls the quality of advice, lender network and personal support. Hence, selecting the advisor largely controls the success rate. 

Myth 5: Hiring an Advisor Can Slow Down the Process 

  • Fact : Contrary to common belief, hiring an advisor for your mortgage fastens the process. They craft the required documents with a wealth of knowledge, which helps prevent common mistakes and receive approval faster. Additionally, as most of the advisors have a personal relationship with the lenders, they use it for communications. This reduces confusion and helps in getting replies faster than usual. 

Myth 6: Tools Can Do The Job of The Advisors 

  • Fact: Online tools can calculate the budget and interest rates. However, they are unable to offer personalised advice. These tools can’t analyse your financial condition and other obligations; only an advisor can do this. An advisor can assess your income, responsibilities, and credit history and provide advice accordingly.

Hiring a mortgage advisor in Spalding is not overspending or a luxury. It is a practical and utmost professional step to make an informed financial decision. Whether you are a seasoned real estate investor or a novice, consulting with an advisor can help you make the best investment ever. 

At David List Mortgage Consultants Ltd, we have been offering mortgage advice since 1993. Our personalised advice and plans help you to make financial decisions every time. 

Connect to book your consultation now.