| Working With Lenders To Secure A Self Cert Mortgage |
| Written by Chris Channing | |||
| Wednesday, 28 October 2009 09:02 | |||
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The self-cert mortgage isn't what it once was. It is quickly receiving flak from banks and lenders because of their nature of being less secure than normal loans, and the economy isn't helping. One may still apply and get approved, but it is going to take song and dance to do so.
The self-cert mortgage isn't what it once was. It is quickly receiving flak from banks and lenders because of their nature of being less secure than normal loans, and the economy isn't helping. One may still apply and get approved, but it is going to take song and dance to do so. An established business with many employees is considered stable. Most of whom are self employed run their business with little to no help, and thus don't have a lot of credibility in the eyes of lenders. If the business is new, odds are it will fail within a few years. Lenders already know this, and are extremely cautious in even thinking about giving out a new self-cert loan to a self employed individual. The key in getting a self-cert loan is to find a way to verify your income. It was once considered fine to state your income and lenders would take your word for it- but that is no longer. A good place to start is to route all of your income through a specific bank account- that way you can distinguish between business and personal expenses. A self cert loan is just like any other- your credit will be a critical factor in ranking your credibility. Having a good credit rating is normally excellent in improving your chances. With a self cert mortgage, this may not always be so, since lenders are looking for a great rating to help cover risk. You can still convince the lender with a good rating, however. A loan officer will work as much more than a representative for a bank- he or she will also take a peek at your budget to see what kind of rates you can handle each month, or period decided upon the two of you. Take advantage of this, and don't be foolhardy in accepting a high payment each month: you will soon find that your lack in quality of living isn't worth it. Competition in the lending business can be used to your advantage. You can negotiate better offers and rates as a result, leading you to benefit from the lender's misfortune. In the case of a self cert mortgage, you don't have this benefit since there is much less competition. Many key lenders have dropped out of the self cert mortgage business, leaving less competition behind. Deals are still there, but you will have to look harder. Closing Comments Make a list of lenders in your area and visit each one to see what they could offer someone who was self employed. If you are eligible, ask them to give you a quote and once you finish your rounds, compare all the quotes you received and make a decision.
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