How to Qualify for a Mortgage If You’re a Freelance Writer
One in every 109 mortgage applications has some indication of fraud from people who try to lie about their income in order to secure a loan. They don’t want to go through the process to learn how to qualify for a mortgage the right way, or maybe they just think it’s impossible.
If you’re a freelance writer, then it may seem unreasonable that you will ever find a loan officer who will accept your financial situation.
But whether you haven’t yet gotten a book published and are just starting out, or have been publishing for years and have the numbers to back up your income, there are steps you can take to demonstrate your loan worthiness. Read on for tips to get started.
1. Monitor and Correct Your Credit Score
One of the most important factors in getting approved for a loan is your credit score. Try to choose the right cards and don’t overspend. CardGuru can help you find the best credit cards for improving your credit score so that you will be more likely to be accepted for a loan.
2. Find a Way to Demonstrate Your Stable or Increasing Income
Although you won’t have paystubs all from the same company, you can still demonstrate the consistency of your income. Most often, you will be asked for tax documents to prove your income.
3. Show Your Consistent Stream of Work
The key to securing a loan is convincing the loan officer that you will be consistently employed in the same field. Try to show them that you have new projects coming up in your pipeline to give them peace of mind about your future income.
4. Demonstrate Your Worthiness With Cash Reserves
Your mortgage will be due every month and as a freelancer, you may not have a consistent monthly income. In that case, lenders want to see that you have the emergency funds available to pay your mortgage through times of struggle.
5. Make a Significant Down Payment
The higher your down payment is, the more security you offer your lender for giving you a loan. While many self-employed people can get away with paying the same down payment as others, putting more down will only improve your chance for approval.
This is a particularly good strategy if your income isn’t as high as your loan officer would like it to be. By showing that you have the money for a large down payment, you demonstrate that you are willing to make your house payment a priority.
Beyond How to Qualify for a Mortgage
Trying to figure out how to qualify for a mortgage when you don’t have a regular pay stub from the same employer can be a challenge. But if you follow the advice in this article, you will be able to demonstrate your income and secure a loan.
But don’t stop there. Make other changes in your life to improve your finances and lifestyle. Check out our other posts for more advice today.