Getting A Mortgage While Self-Employed: 3 Things To Know

Posted onAugust 28/2017By

While many people make a good, or great, income being self-employed, it can make getting a mortgage or other loan more difficult. However, this doesn’t mean it’s impossible. There are just a few more things to take into consideration. While you can use an online mortgage qualifier calculator, it’s often helpful to seek the advice of a mortgage professional as well. Before you do, here are some important things to know if you’re applying for a mortgage while self employed: 1. What You Need When applying for a mortgage loan, you must be able to prove your income to show that you’ll be able to make your monthly payments in full. Most lenders will require at least two years’ worth of accounts and tax returns in order to prove your income. The more you can provide in this case, the better. To apply for a mortgage, you’ll generally need: Good…

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Ways A Second Mortgage Can Help Your Financial Situation

Posted onAugust 29/2016By

Life happens – and there are things that may crop up that may put a serious damper on your financial situation. Owning your home can help mitigate these problems through the use of a second mortgage. Consolidating debt, for most people, is a reality in this economic climate. Homeowners with at least 20 per cent equity in their homes can apply for a second mortgage, which is a great way of working away at reducing your debt. It’s also an option when you need extra cash for things like medical expenses or renovations. Do I qualify? The interest rates on second mortgages are often higher than first mortgages, yet carry lower interest rates than credit cards. If you pay other debts on time and choose to get a second mortgage, you may find your credit score improving, a definite bonus! Here are a few things lenders will look for in…

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How Student Loans Can Affect Your Mortgage Application

Posted onMarch 21/2016By

The latest figures show that almost $30 billion is owed by Canadian students in student debt. With many people going back to school in their adult years, this increasing level of student debt brings with it numerous challenges for the average Canadian student. This is clear when examining how student loans can impact your ability to buy or sell a home. And so within this article, we’ll look at how student loans might impact a buyer during their mortgage application process. Your Debt to Income Ratio When buying a home, your lender will calculate your debt to income ratio by adding up your monthly payments, along with your expected mortgage, and dividing the total by your monthly income. To qualify for a loan with most companies, your debt-to-income level should be less than 43%. For those with a $20,000 student loan looking to buy a house for $300,000 or more, this…

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What Income Verification Methods Are Required When Applying For A Mortgage?

Posted onFebruary 26/2016By

When applying for a mortgage, you will need to demonstrate to a lender that you have a substantial enough income to pay off the mortgage in the future. But how exactly can you reasonably prove your income? This article will detail the methods you can use to verify your income to a mortgage lender. Make Copies of your Records The first step is to provide your lender with copies of your records that indicate your income. This means your two most recent pay stubs, your most recent checking account statement, your current savings account statement, and your federal income tax returns from the previous two years. This should provide your lender with enough information to accurately gauge your income and financial situations. Debt and Loan Statements Your income will not be the only factor that your lender will want to verify. Your mortgage lender will want to know about any…

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Benefits Of Early Mortgage Renewal

Posted onOctober 19/2015By

Depending on the numbers, you have the opportunity to save cash with an early mortgage renewal. Each mortgage situation will be different based on many factors including the amount owing, the time left on the term, and your obligation to your lender, but there may be some benefits for you. What are the benefits of early mortgage renewal? Early renewal gives homeowners the chance to negotiate the terms of your mortgage. Even though you will be breaking the terms of your current mortgage, you can enter into a new term with a much more desirable rate. When you break a contract, you know there will be some penalties or consequences. The usual penalty is a prepayment penalty of three months at your current rate or at the IRD, also known as the Interest Rate Differential. You have the ability to weigh your potential savings with the Mortgage Penalty Calculator. Tips…

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