Getting a mortgage to buy a condo or loft in DTLA is tough when you’re a freelancer or business owner. Here’s what you need to do to get a mortgage.
How to Get a Mortgage if You’re Self-Employed
- Show that you make a profit
- Prove your income is stable
- Show that you have plenty of money in the bank
Show That You Make a Profit
You’ll have to show your previous two years of tax returns, as well as hand over bank statements and other documentation that proves your business is bringing in a profit. Your lender might require other documentation, too, such as proof of tax payments you’ve made, your business license and other paperwork. Every lender is different, so tell yours right off the bat that you’re a freelancer or self-employed business owner.
Prove Your Income is Stable
People who are self-employed also have to show lenders that there’s plenty more money on the way – and that they’re not going to throw in the towel and become unemployed (and therefore unable to make mortgage payments). Lenders want to see stability, even if your income fluctuates from month to month. You have to show there’s a reasonable expectation you’ll still be able to make your payments, even when you have a bad month.
Show That You Have Plenty of Money in the Bank
Here’s where your bank statements come in. You’ll have to bring in plenty of documentation that shows where your cash is, whether it’s in investments, a savings account or a checking account. Even still, lenders might require you to pony up a big down payment – and some won’t accept less than 20 percent down.
Are You Buying a Loft or Condo in DTLA?
Call us at 213-254-7626 or get in touch with us online to start exploring your options when you want to buy a loft or condo in downtown Los Angeles.
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