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- In First things first - Steps before applying for finance, Getting ahead - How to improve your finances
Many people enjoy the freedom that comes from being self employed. But when it comes to getting a home loan, working for yourself can make it a little more difficult.
Whether it’s for a new purchase or a refinance, lender policies for the self employed are considerably more complex.
Variations in lender policies
Imagine that during one financial year, you earn $40,000. The next year, things pick up and you earn $80,000. Seeing as your financial situation has improved so much, you decide to buy a house.
Unfortunately, not all lenders will see things the same way. One bank may look at your income over the two years and decide that your yearly income is $48,ooo. Another bank will consider your income to be only $40,000. Yet another lender will calculate your income at $80,000 per year.
As you can imagine, these differences in income calculation will have a huge impact on your borrowing capacity. The lender who decides you only earn $40,000 per year certainly won’t lend you as much as the lender who sees your yearly income as $80,000.
Finding the right lender
Faced with these confusing discrepancies, some people make the mistake of making multiple applications, to see which bank will look most favourably on their income.
This is never a good way to find the right lender.
Every application you make marks your credit file. Multiple credit file marks in quick succession will greatly reduce your chances of being approved for finance.
With years of industry experience and knowledge, Sutherland Shire based Bee Finance Savvy is able to assess your situation, and determine which lender is most suitable for you. We take the guesswork out of obtaining finance. We only submit a home loan application once we’ve made absolutely sure which lender is right for you.
The next step
If you’re self employed and want a home loan, you can get in touch with Bee Finance Savvy for a free consultation by calling Desiree on 1300 140 554 or 0455 131 937. You can also email her at firstname.lastname@example.org . Desiree will provide you with free up front assessment, and will keep you updated every step of the way. Our process will maximise your borrowing capacity, placing you in the best possible postion to buy the home you really want.
To learn about how Desiree from Bee Finance Savvy has helped other customers, we invite you to read our WOMO reviews: https://www.wordofmouth.com.au/reviews/bee-finance-savvy-miranda
You may also enjoy – http://beefinancesavvy.com.au/investment-loan-changes-borrowing-power/