Calling all entrepreneurs, hustlers, and small biz owners! 💪🏼
So you started your own biz and things are finally growing steadily. Your business has been your baby and it’s starting to take off! And now you can’t help but think about purchasing a home in St. Louis in 2023!
GASP. Could you be ready for homeownership?
If you can own a biz, you can own a home, BUT there are a few things you have to understand, first!
Most mortgage lenders require at least two years of being self-employed (and steadily!) before qualifying you for a home loan.
There are exceptions, like if you were in a similar line of work before or if you had a year of formal training, but for the most part, a solid two years is a non negotiable.
So what’s the secret?
Start preparing WAY sooner than you think. Keep track of every penny spent and earned and have a professional handle your taxes so that you have proper and accurate documentation when it comes time to apply for a loan.
In addition to work history, your lender will look at your:
➕ Credit score
➕ Credit history
➕ Debt (debt-to-income ratio)
➕ Savings & Assets (down payment and closing costs)
So paying down debt and/or growing your savings is a great way to pass the (two year) time! Plus, keep grinding and increasing your income as you learn and continue to better your offerings.
But what if it’s just a side gig or a passion project? Lucky for you, if you can qualify based on W-2 income and personal savings, then your lender can just ignore the self-employment income altogether! 🙌🏼
Being your own boss is an amazing accomplishment, but a lot of biz owners feel defeated when applying for a home loan. Avoid that same feeling of defeat by educating and preparing yourself now so that future (CEO) you can buy a house with confidence!
Send us an email at firstname.lastname@example.org and we can connect you with a lender today (never too early!)