First-Time Homebuyer Resources for Freelancers
The experts at Intrinsic Real Estate Group can help you find a home that suits your budget and lifestyle. Call 713.364.6694 to schedule an appointment!
By: Brittany Fisher of financiallywell.info
For freelancers and independent contractors, trying to apply for a mortgage might seem complicated. But you don’t have to resign yourself to renting forever. By boosting your credit score and researching the mortgage application requirements for contractors who want to buy homes, you’ll improve your chances of qualifying. Peruse the following resources before you start contacting lenders!
Special Concerns for Contractors
Since you’re not traditionally employed by a company, your lender will want to see some different attributes in your mortgage application.
Want to illustrate to lenders that you’ll have reliable, consistent future income? Ask your clients about establishing retainer agreements.
To show lenders your income and expenses, organize and sort your tax documents.
A higher income will help you get approved for a larger loan, so implement these strategies to raise your rates!
Forming your business as an LLC further legitimizes you as a business professional, an aspect that’s favorable in lenders’ eyes. Forming an LLC can be time-consuming and tedious, so consider using a formation service like Zen Business to get the work done on your behalf.
Managing Your Finances
There are a few general personal finance guidelines that every homebuyer should follow, but they’re especially important for contractors!
Get a solid idea of your home buying budget by calculating affordability based on your income and usual monthly bills.
Research the tips and tricks you’ll need to increase your credit score and prove to lenders that you can handle debt responsibly.
Do you have debt? It’s time to come up with an accelerated pay-off plan.
The Home-Buying Process
You’ve expanded your business, saved money, and organized your financial documents — now, it’s time to officially begin the home buying process.
As you interview various real estate agents, ask about their successful experiences working with other contractors.
Make sure that you know exactly what to look for when you go on home tours, and keep an eye out for properties with adequate home office space!
Before you put in an offer on a home, learn the ins and outs of making a down payment.
Get acquainted with the many types of loans that are available to you.
As a freelancer, you’re used to dealing with contracts and negotiations. Therefore, buying a home might be easier for you than you would have assumed! With these tips, you’ll be able to secure a mortgage with a reasonable interest rate.