Working as a freelance graphic designer comes with many benefits like more freedom, flexibility, and the convenience to work when and where you want. Freelance work is becoming more and more popular in today’s society. There are currently about 56 million freelance workers today in the United States. While it is becoming more popular because of the many benefits that it offers there are also some downsides. One of the most frustrating things that a freelance worker must deal with is the ability to get a mortgage.
When working as a freelance graphic designer you typically do not have a steady income. You likely get hired from one form and then another. You may bounce around from job to job because the work you do is not full time. This often results in banks and other financial instructions not wanting to give you a loan because your work history is sporadic. Here are some of the tips that a popular and reputable freelance graphic designer, Jeffrey English NJ gives to help other freelancers qualify for a mortgage.
#1) Look For Lenders that Offer Self-Certified Mortgages
One of the best ways to secure a mortgage is through a lender who offers self- certified mortgages. These mortgages allow you to certify your own income and find a budget that you can afford. You can bring all of your income records to the financial institution and they can help you find a mortgage that is right for you.
One key thing to remember is that not all financial institutions will offer this type of mortgage. These mortgages are often at a higher interest rate, which can be a little more expensive than traditional mortgages. The more financial records that you have the less risk there is for the financial institution and the lower your rate may be.
#2) Bring At Least 2 Years of Income Returns
One crucial thing that all freelancers need to have is proof of two years of income. Showing that you have had constant or adequate work for the last two years helps give the financial institution confidence in your ability to pay your loan. The more records that you have the less risk there is for the bank. While people that have had a steady income for a few years will likely only need sixty days of pay stubs, freelancers are in a different situation and will need more records.
#3) Shop Around
One of the best things you can do before getting a mortgage, according to Jeffrey English NJ, is to shop around at different lenders. Be careful not to let each lender run your credit because this could have adverse effects. The more hard checks you have inot your credit the worse your credit will go. You should explain your financial situation and work history to each lender, bring necessary paperwork, and give them a rough estimate of what your credit score is.
If each financial insulation has this information they should be able to give you enough information about what type of loan they can provide you with. Shopping around for a mortgage allows you to find the best possible loan for you and your family.
#4) Ask Family To Co-Sign With You
If you are having a lot of trouble getting a loan because of your freelance career you may want to ask a family member to co-sign your loan for you. Asking a family member that you trust and respect to cosign a loan for you may help you get a very good offer and a loan that is better than you could have gotten on your own. Do not ask a family member that you do not trust because this could cause problems in the future.
#5) Wait
If you really are unable to secure a mortgage using these tips the best thing you may be able to do is to wait. Waiting until you have a steady income or have the necessary two years of work income may be your best option. There is no need to rush into buying a home if you are not fully qualified. Rushing into a home could cause you to do more than you need to.
If you are a freelance graphic designer it may be difficult to secure a mortgage. While you are able to get work and provide a steady income for you and your family, many financial institutions are still not comfortable lending to freelance. These tips can help you secure a loan
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