As a self-employed person you may have looked into getting a home loan only to find that you cannot provide the sort of documentation that the lender has required. You know that your business is solid and that you are making good money, but how do you satisfy your lender so that you can get that home loan that you are after?
Verification Options to Consider
Thankfully there are alternative ways to verify your income as a person who is self-employed, applying for a home loan.
State Custodians Mortgage Company offers low doc home loans and other products for self-employed people who may not have finalised their tax returns yet but have a genuine income and can afford a home loan.
These alternatives may include looking at a business’s BAS (Business Activity Statement). The BAS can confirm the turnover of a business and as they are usually filed every month or on a quarterly basis, this makes them more reflective of the current position compared to a tax return that was lodged in a previous financial year.
The BAS may be examined in conjunction with older tax returns to get a more complete understanding of how money moves through the business and create a more accurate picture of your financial situation. Another method to verify income is to obtain confirmation from the business’s accountant about the financials of the business and/or its owner.
Although these alternate methods of income verification can help you if you don’t have recent tax returns it should be noted that because you are going outside the more traditional method of verification, the interest rate charged is typically higher. It is the opportunity cost that you have to weigh up when assessing if the higher interest rate is worth doing the deal.
Taking action to get your low doc home loan
As a self-employed person you know that timely action is needed to accomplish your goals. The same is true with low doc home loans. Get it underway now by giving the credit managers at State Custodians Mortgage Company a call on 13 72 62. They can work out which home loan will be suited to you and your situation, and will be at work behind the scenes to get it in place.