Self-employed workers who want to secure a mortgage fear rejection from lenders, so they don’t apply. A TML survey states the cause: they have irregular and spotty work histories and income. Specialists at the Greycoat real estate agency inform how lenders view them as a risk, so they add stricter requirements to ensure those borrowers have the funds to repay their loans.
Suddenly, getting a mortgage becomes tricky. But can self-employed workers secure a mortgage? Also in this case, Greycoat has the answer. Fifty-seven percent of people who applied got approved for a secure mortgage. Fifteen percent of that group were unsuccessful on their first try. Of the rejected group, 38% said it was due to a lack of steady income.
The second reason is that lenders believed they wouldn’t make enough to repay according to their calculations. The other reasons were a lack of income documentation, missed or late payments, and recent defaults. Greycoat informs that of the ones who chose not to apply, their reasons echo the rejected group.
Fear of rejection is the top reason, and fear of the challenge of getting one is second. Saving up for a deposit, generating solid income documentation, and waiting for affordable interest rates are three, four, and five, respectively. The rest, Greycoat informs, felt the application process was too daunting.
Greycoat Real Estate does not believe self-employment status is a roadblock to a mortgage rejection; we will build your financial portfolio for lenders to view. We also have connections to specialty lenders who will review your situation fairly. Everyone deserves a shot at homeownership or commercial ownership. You’ll never know until you try to secure a mortgage with our connections.