The world has changed and businesses across the world are recognizing the benefits of working with self-employed freelancers instead of hiring full-time employees. In such a scenario, your decision to become a freelancer may be a smart career move, but this decision can make it touch for you to refinance your asset loan.
The Biggest Issue Faced by Self-Employed Borrowers
When you are self employed, the only proof of your income is your income itself. The money credited to your bank account is the only proof that you are earning an income. You are unlikely to have pay stubs or tax forms, or other certificates issued by the employer that can be used as proof of income.
This can make it tough for your to refinance your home loan if the lender insists on documentary verification of your income.
The Solution—No Income Verification Refinance
This is why opting for a no income verification refinance loan can help. This loan is structured on the basis of the value of your home and the extent to which you wish to capitalize your home equity.
If the loan to value ratio works out well for the lender, then your refinance application will go ahead even if you are unable to verify your incomes.
Contrary to what you may think, this is not as odd or unconventional as you think. Not all salaried individuals are reliable borrowers and just because you don’t have easily-verifiable incomes.
The Smart and Sensible Option
This is a smart option, especially for refinance transactions, because you already have an asset, a good amount of home equity available in the asset, a good track record of repaying your existing home loan, and a stable income.
Considered together, these factors should be enough to convince any sensible lender that refinancing your home loan is a safe and low-risk transaction.
So, stop trying to be defensive about the fact that you are a self-employed entrepreneur. You don’t need to struggle to refinance your home loan just because you cannot verify your incomes.
Simply stop focusing on conventional lenders and check out financial institutions that offer refinance without requiring extensive verification if your incomes.
This simple decision will help you unlock the value lying idle in your home and give you the advantage of having liquid cash in hand during tough times. You can use the extra money to either manage your finances better or use it to expand your business and prepare for the coming good times.
