Getting a home loan is a daunting prospect for many people. Even for those who have excellent credit still struggle with finding the best possible interest rates, and it can take quite a bit of comparing just to find the right one. For people who are seeking self-employed home loans, it’s even tougher. One of the biggest challenges that being your own boss can present is proper proof of income. Usually you need documentation from your employer, such as a payslip, but when you’re self-employed you don’t have a handy document on a fancy company letterhead. Still, there are ways for you to verify your income and grab that loan you’re looking for. This is where Finstar Home Loans can help.
First, you’ll fill out an income declaration, which is basically an official form in which you disclose the type of business you have and an estimation of your annual income. Although this may seem daunting you’ll also state the details of the loan, including the amount, rate, and term. Once completed and signed, the lender will use this form in conjunction with any other documentation you might provide to assess your qualifications for the loan. One of our Finstar loan experts can help you with this.
Ask your accountant
If you have an accountant who keeps track of your finances and handles your quarterly BAS returns, then it’s a safe bet that they have a pretty good view of your financial situation. In these cases, you can have them complete an accountant declaration form. This document states how long they have worked as your accountant, verifies that the income your declared is accurate, and acknowledges that they see no factors that will hinder you from making the proper repayments.
Keep your statements
Quarterly BAS statements are another great document to have handy. These detail your purchases, both non-capital and capital, and the gross trading income for that quarter. Typically, lenders will want to see two to four of these statements to establish consistency. With this information, your net profit can be estimated and then compared to your declaration to ensure that they are in agreement.
Finally, your business bank statements should be presented. These can give the lender a good idea of your income versus your expenditures. Usually, about three months of statements is required, so make sure you have them on hand. Once all these documents are present and accounted for and when they’re all found to be consistent with one another, you’ll be that much closer to getting the home loan you desire.
This process doesn’t need to be as difficult as it sounds. Our Team at Finstar Home Loans are here to guide you through this process. By getting the right advice you could save thousands, reducing your repayments drastically and even shortening your loan term.
Call one of our friendly home loan experts from Finstar Home Loans today to get your free consultation 1300 346 782