12 things every freelancer should know before applying for a mortgage

You’re tired of renting, and you’re eager to become a homeowner. But you’ve been working as a freelancer in the gig economy for years now, and you’re unsure about all the ins and outs of the mortgage application process. It’s important to spend time reading up on lenders’ expectations for self-employed borrowers. Check out these resources and start taking steps toward homeownership.

Understand the logistics

What is the mortgage application process actually like for gig workers? These resources break it all down.

• First, learn about all of the factors that lenders look at for self-employed applicants, like your credit score, debt levels, and business track record.

• If you’re not sure how to organize all of the information you need, work with an accountant to get started.

• Assemble a file with all of your essential documents to show the lender.

Improve your financial standing

Utilise a few of these your mortgage by boosting your income and savings rate in the months before you apply.s

• It’s time to increase your freelance rates so that you’ll have more wiggle room in your house-hunting budget.

• Offer your clients retainer agreements in order to show lenders proof of steady, consistent income.

• Allocate a larger portion of your income to your savings and build up your emergency fund.

• To keep your business finances separate from your personal finances, consider opening a business bank account.

• Utilize a few of these strategies to improve your credit score.

Start house hunting

You’ll need to take care of these final tasks prior to putting down an offer on a house!

• Determine whether we’re in a buyer’s or seller’s market.

• Go over your income and typical expenses to create a realistic house-hunting budget.

• Set up a savings account with enough money for your down payment.

• Figure out how much you can expect to pay per month on your loan with a handy calculator.

If you’re self-employed and working in the gig economy, homeownership is within your reach. Navigating the process can be tricky, but with the right resources, you’re more than capable of qualifying for a loan. Soon, you’ll be running your business from your new house!

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Words: Joyce Wilson