How Self Employed Individuals Can Qualify for a Mortgage?

How Self Employed Individuals Can Qualify for a Mortgage?

Self-employed individuals may face a harder time securing a mortgage loan than others. Lenders may be reluctant to give you a loan, as they may fear you may not make enough revenue to pay off your loan each month whereas other may not want to deal with the paperwork involved in providing a loan to self-employed individuals.

What Should You Expect?

If you are self-employed, lenders may turn the other cheek because according to them, you are not an ideal candidate for a loan. They will offer you high interest rates, which will force you to shop around for other lenders offering a lower interest rate.

Another problem you may run into is if you have used several of your business expenses to decrease your taxable income. When lenders see this, they will question your ability to earn sufficient money to buy a home. Lastly, lenders look for loan to value ratio, which means that you will have to put down a large down payment.

How Do You Make Yourself an Attractive Candidate in the Eyes of the Lender?

To increase your chances of securing a mortgage loan to buy a house, you will need to the following things:

  • Maxing Out Your Credit Score

This one should be obvious. Lenders will be more susceptible to consider giving a loan to people with a high credit score than those with low scores. A high credit score indicates low interest rates if they approve your mortgage loans.

  • Put Down a Large Down Payment

Putting down a large down payment increases the equity of your home. The lender will not see you as a risk when they know you intend on purchasing the home and that you will not walk away from it in times of financial hardship.

  • Have an Emergency Fund

An emergency fund, showing large sums of moneys, provides the lender with the security that you will continue to make your monthly mortgage payments even if your business closes down.

  • Repay Your Entire Debt

The lender is more likely to approve your mortgage application if they see you have paid all of your debts. You should try to repay your car loans, credit debts, and any other loan you have taken out in order to increase your chances of securing a loan.

  • Show Them You Are an Experienced Entrepreneur

If you want to be successful at obtaining a mortgage loan, you need to show your lender that you have a minimum of two years experience in running a business. Conversely, if the interest rates are low, you need to apply for a mortgage loan even if you do not have a long history of being self-employed.

  • Provide Business Documentation

You need to provide the lender with business documentations such as last year’s tax returns, balance sheets, and profit and loss statements to increase your probability of securing a mortgage loan.

As long as a person maintains a good credit history, it should be impossible for them to obtain a loan.…

Should I Accept Financial Help From My Parents?

Should I Accept Financial Help From My Parents?

When we are young, our parents pay for all our expenses. With time, we start to learn about financial independence and that is usually achieved with the help of learning how to earn an allowance, doing a part time job, and saving up monetary gifts. It is only after we graduate from college that we get an actual job and start paying our own bills. When a child turns eighteen, they move out and start bearing their own finances. Everyone tries best to spend according to their income, but there are circumstances when people need help. The question is that is it acceptable to take financial help from your parents?

Should You Be Taking Money From Your Parents?

According to a survey b Gallup, almost 29% of adults under the age of 35 still live with their parents. The decision of taking money from your parents is based on the situation. What you should do is assess the whole situation and see if you actually do need financial help. If you want to go on a vacation but don’t have enough money, that is not a good idea. On the other hand, if you have an emergency and don’t have enough money, it is completely okay to talk to your parents.

Are You Asking Or Are You Offered?

A lot of parents like to gift money to their children as gifts. If your parents are offering you help, it is okay to accept it. What is not okay is that they feel pressured to help you. In case that happens, do not accept any help from them.  A lot of adults don’t feel comfortable when it comes to accepting gifts from their parents. This is because they feel that they are independent and should not be bothering their parents anymore.

What Strings Are Attached?

Make sure that you agree to the terms before accepting it. If you are parents are helping you out, talk to them and find out whether it is an interest free loan or not. A lot of times, there are strings attached when parents help you out. A lot of children report that their parents say that since we are helping you out, you should come meet us more often.

How to Pay Them Back?

Be prompt in paying your parents back. A lot of times people think that since their parents are lending them money, they can pay them back any time they want. You are an adult, so paying back any sort of loan should be your priority.

How Will Accepting money Change My Life?

A lot of times people feel shame when accepting money from their parents. Don’t feel that way and think of money as just another kind of loan that you are supposed to pay back.

 When To Refuse Financial Help?

There are instances when you should refuse help from your parents. They are:

  • You feel extremely guilty
  • Your parents aren’t earning enough

Your parents are paying their own loans…

Top 3 Cars That Are Cheaper On PCP than Paying Cash

Top 3 Cars That Are Cheaper On PCP than Paying Cash

For a number of Britons, buying a new car can be an expensive headache. For those, who, despite having a car, want to keep changing it every two years down the road, a PCP (Personal Contact Purchase) is one plan that will make sense.

With PCP, it is now easier to buy a new car. All you will need is a 10% deposit at the time of agreement. This amount depends on the type of car you are selecting, of course. You make your deposit and then pay your monthly amount. Towards the end of the PCP deal, you are left with two options.

You can either use your car as a deposit to make another deal on a newer model or hand the car back to make a deal with a new broker. Many buyers are thrilled by this arrangement as they don’t get stuck with the cars they feel like changing. All in all, with an economical monthly budget, you are able to enjoy a new car every once in a few years.

PCP comes cheaper than regular financing deals. Those who want to keep the car can make a balloon sized payment and end up owning the car.

The best thing about this whole business is that you can choose from a variety of cars available at various vehicle manufacturers in the UK. To make things easy for you, we have compiled a list of the top cars that are available on PCP. Some of these models will be far cheaper for you than others, with an easy £150 or less per month.

1.     Volkswagen Up and Skoda Citigo

When there is a debate about city cars, the first model that pops into your mind is Volkswagen Up. Most of the models of its series are worth making a PCP deal for.

If you prefer a little more quality and are able to put down a budget of £5,000 for the deposit, you can take the car home for around £140 per month for a period of four years. Volkswagen Up moves with a 1.0 litre three-cylinder petrol engine in whichever form, 59bhp or 74bhp.

Moreover, you can also opt for the sisters of the UP—the Skoda Citigo or the SEAT Mii. Both of them will also fit inside the same affordable budget.

2.     Renault Zoe

If you thought you wouldn’t be able to afford an electric car—you were wrong. You can get a Renault Zoe on a two year PCP. You will get to save enormously during this 24 month deal. The monthly bills can start from £109. Your dealer can also make a contribution along with a very rational 3.9% APR.

Renault Twingo is also a model you can easily consider for more or less the same range.

3.     Hyundai i10

A former “Carbuyer of the year 2015”—the Hyundai i10—is the most favourite small car of UK.

Offering more space than it appears to promise, this car is fun to drive as compared to other city cars. Your repayments on this alloy wheeled drive can be as low as £69 a month.…

How Shopping can be Facilitated by Online Purchases?

Internet is the main source that has facilitated online shopping so much. People who find difficulty in making physical shopping are now relying on online purchases. If you do not have proper online connectivity, then web shopping is not possible at all. Virtual stores are found online in the form of websites and you should visit the sites for making random online purchases.

There are many people who think that making online purchase is a difficult task but it is completely a wrong concept. For making these purchases, you do not require acquiring intricate technical knowledge; rather basic computer knowledge will do. The most interesting fact is that greater shopping satisfaction can be gained by means of using this purchasing mode.Complete privacy is being maintained and thus customer details are not being shared with anybody.

500There are many people who think that making online purchase is a difficult task but it is completely a wrong concept. For making these purchases, you do not require acquiring intricate technical knowledge; rather basic computer knowledge will do. The most interesting fact is that greater shopping satisfaction can be gained by means of using this purchasing mode.

Benefits of online shopping

Online shopping allows you to purchase anything and everything. You just need to place your order and your purchase will be made instantly.bca8416b-f976-453d-ba56-90e16a217cb5

You do not require standing in any queue for a long time for making your billing rather your billing can be instantly made with few clicks.

You can save great energy and time by choosing the concerned option of purchase and on the other hand greater cist can also be saved as a result of the same.

This kind of shopping has opened doors for those fellows who hardly get any time for making shopping of household items. Now, these purchases can be made at any point of 53c89fd818f19time and the pleasant thing is that the purchase can be made from anywhere, be it your smart phone or computer.

You can now use any mode of payment like cards, bank transfer and others. Multiple options are offered by the online stores and thus you can get the freedom of choosing the most reliable one that seems to be the convenient option for you.

You will never face any complicated situations in case of this kind of purchase and this is another plus point for which it is getting the highest exposure in the present age.

new-chart-types-sparq-500x300Better prices are offered and sometimes you can even come across different promotional deals especially discounts, vouchers, promo codes and others. All these offers can make your purchases more affordable as a result of which you will be able to maintain your budget without any difficulty.

This purchase is very much consumer-friendly and thus you can make easy shopping of different kinds of items.stax

You will receive the ordered items at your place with absolutely no delivery cost and this is really quite an impressive deal. Whatever may be the item but assured home delivery can be availed. The delivery is made on time and thus your purposes can be well served.

Amazing varieties are available and thus at times you might get confused regarding what to purchase and what not. You can check out the varieties and can frame your purchasing list accordingly.