Getting on the property ladder is tough enough, thanks to a housing bubble that won’t burst and a lack of new and affordable properties. For business owners, the process is even trickier since your occupation singles you out as a risk to creditors.
As a result, they might not lend you the money you need to buy a home. Considering that your personal life should run smoothly next to your professional life, this is highly problematic. The last thing you want is home issues impacting your company.
Thankfully, these expert tips eliminate the confusion and make purchasing a property less stressful.
Strike A Declaration Balance
As a small business owner, there is a temptation to accrue as many expenses as possible to reduce your tax obligations. But, this also decreases the level of income, and the latter is what banks use to determine whether you’re eligible for a loan and how much you should receive. Therefore, you’re better striking a balance between shaving money off your tax return and accurately declaring your yearly wage. The more transparent you are, the higher the odds of being accepted for a mortgage. It’s essential to do it years in advance to build up a strong financial resume.
Meet Up With A Lawyer
Don’t worry because things don’t have to escalate to the court system for you to pick the brains of an attorney. As a business like Canyon Legal Group highlights, they offer real estate law expertise you can count on. Considering the muddy waters of the legal system, it’s smart to clear up any issues or myths before applying. After all, knowing what is legal and what is illegal will increase your chances of securing an ideal mortgage. Plus, professionals have litigated various cases, so they should be able to point you to contacts who can lend a hand.
Try A Fannie Mae Loan
The Fannie Mae program might enable you to afford a house more easily. How? It’s because this leading source of financing for mortgage lenders issues guidelines that people and organizations take into account. For instance, small business owners only require a year of tax returns, compared to the two they used to have to provide. As a result, you should have more leeway when it comes to applying for a mortgage. However, there are terms and conditions, such as being a new business, so you must check that you’re eligible first.
Buy An All-Inclusive Property
If you rent offices, you are wasting money. The Coronavirus pandemic has highlighted many things, yet one of the most significant is how people can work from home more regularly. Buying a house with the space for living and working is a wise move as it will save you a small fortune. And, the money you save can be used to purchase your new house. Even if it isn’t, the cost reductions will make properties more affordable in the long-term.
It’s not all doom and gloom. Business owners who are organized and resourceful can find ways to invest in a property to help their company grow.