Friday, 11 July 2014

Mortgage for self-employed

Obtaining the appropriate level of credit is necessary for applying for any credit obligation. It is calculated at the same time based on a number of variables, including not only income but also its source. Do self-employed people have a chance to obtain a mortgage?

The most desirable from the perspective of a group of bank customers are persons employed under a contract of indefinite duration. This source of income is identified because of the high stability of the borrower and the ability to adjust the loan installments in the long term. Getting income from other sources, of course, does not rule out the possibility of obtaining financing, even a mortgage, but his acquisition is in this case much more difficult.

Conditions for the self-employed

Self-employment in the ordinary course of business does not rule out the possibility of buying a home so, or an apartment on credit. Each financial institution is defined differently but the conditions that must be met by potential borrower, and in the vast majority of banks is also important type of accounting used by a person established. Banks very strictly define the minimum duration of the activity, after which it is possible to request for a loan. In some cases it will be possible after the end of the quarter, but the vast majority of banks will require much more experience in running your own business. The most common option is the minimum period of one year, but there are banks that require continuous activity for 24 or even 30 months.

It should be noted that self-employed persons will be easier to obtain a loan if they will be able to present documents proving the stability of income distribution - they can be long-term cooperation agreements, contracts or orders. Interestingly, fewer problems in obtaining financing will also have specific professions, such as a lawyer or doctor. After all surprising that self-employed people are treated less favorably than persons employed under contracts of employment, which currently are not yet any guarantee of continuity of employment and receiving income.

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