Blog Article Courtesy Of: Carla Lopez @boomerbiz
Purchasing a your dream home is an exciting adventure for any entrepreneur needing a space that balances family and work life. However, it can be a challenge to get pre-approved for a home loan, especially for self-employed individuals.
Prepare for Pre-Approval
As Money Under 30 explains, loan companies are often cautious in granting pre-approvals to entrepreneurs. The risky nature of running a business means additional hurdles for the self-employed. Lenders generally want to see at least two consecutive years of steady income before granting business owners pre-approval for a mortgage. Proof of a steady income is demonstrated in your income taxes. It can help if you consult an accountant prior to house hunting so you can ensure you’re in a good place financially.
One thing you will want to work on is improving your credit score by lowering your debts, such as credit cards, car loans, and student debt. If you are struggling to make payments, contact a debt counseling agency for help. Preparation for a home loan will take longer if the amount you owe outweighs your income.
Once you are fully prepared, contact a lending agency to start on the process. Work with a Real Estate Broker to get connected to the right lending companies. Pre-approval determines the loan amount a lending agency is willing to give you, and it provides validity in the eyes of sellers when you’re house hunting. What’s more, having this number helps you avoid searching for houses outside of your affordable range.
Begin the Search for Your Dream Home
After you are pre-approved, it’s time for the exciting part: finding the right home! Think about what qualities you want in a home before browsing the housing market, and write up a list of “must-haves” and “nice-to-haves.”
For example, as an entrepreneur, what does your space need to maintain a healthy work-life structure? Having a mental visual of your ideal dream house can narrow down your search to those that are within your budget and meet your expectations. Think about what this might look like; do you need a space fully apart from your family, so that both your family and your business can enjoy privacy? Will clients be coming and going, making extra parking and a separate entrance a must-have? Perhaps even a half bath and kitchenette is in order.
If you’re going to be doing some construction, consider weighing the cost of building a new home versus renovating an existing property. Some Real Estate Brokers are well-rounded, specializing not only in finding terrific existing residences, but also in finding ideal vacant land so you can design the home to mesh beautifully with both your personal and professional requirements.
You also want to compare housing prices in different areas. When it comes to pricing, location matters and can vary throughout an area. To give you a starting point, average houses in Newark, for example, cost about $272K.
If searching for the proper home has not yielded the best results, you may be able to raise your budget by implementing new strategies that increase the profitability of your company. Ask yourself, what would bring more prospective customers and investors to your home-based business? Do you need to address your marketing strategies? Would better networking help? What about upgrading your website?
Another idea is continuing your education to get a master’s degree in your field. A graduate degree increases your credibility and can boost your business launch, and as U.S. News explains, those who advance their education can usually expect to increase their salaries, too.
The house in which you will run your home-based business is an important investment. As an entrepreneur, you do not have to miss out on a great living space. With a little preparation to get pre-approval and wise budgeting decisions, you can own your ideal home.