Buy or refinance a property with or without showing your tax returns
Advantages of Working with a Mortgage Broker
Access to a Wide Range of Loan Products
One of the most significant advantages of working with a mortgage broker in Washington is their access to a diverse array of loan products. Unlike banks or credit unions that offer their specific products, mortgage brokers can connect you with a variety of options from multiple lenders. This extensive selection increases your chances of finding a mortgage that perfectly aligns with your financial situation and homeownership goals.
Mortgage brokers have established relationships with numerous lenders, both large and small. This means they can offer you a broader spectrum of loan options than you might find by visiting a single bank. Whether you're looking for a conventional loan, an FHA loan, a VA loan, or a specialized product, a broker can help you find it. This wide access ensures you have the best possible chance of finding a loan with terms that suit your financial situation.
Moreover, brokers are often aware of unique products and promotional offers that might not be widely advertised. This insider knowledge can be particularly advantageous if you have specific needs or are facing unique financial circumstances. With a mortgage broker's assistance, you can explore options you might not have considered or even known existed.
Expert Knowledge and Guidance
Mortgage brokers possess in-depth knowledge of the mortgage industry and the Washington real estate market. They can provide expert advice on the best loan products available, explain the complexities of different mortgage options, and guide you through the entire application process. This expertise is invaluable, especially for first-time homebuyers who may be unfamiliar with the intricacies of securing a mortgage.
Understanding the ins and outs of the mortgage industry can be daunting for the average homebuyer. Brokers spend years developing their expertise, understanding market trends, lender criteria, and the various products available. They keep abreast of changes in the industry, which means they can provide you with up-to-date advice and insights.
For first-time homebuyers, this guidance can be particularly beneficial. The process of securing a mortgage involves many steps, each with its own set of challenges. A mortgage broker can help demystify this process, breaking down complex concepts into understandable terms. They can help you understand how different loan products work, what terms and conditions mean, and how to compare different offers effectively.
Better Rates and Terms
Mortgage brokers have established relationships with various lenders, which can often lead to better mortgage rates and terms. They can leverage these connections to negotiate lower interest rates and more favorable loan conditions than you might be able to secure on your own. Even a slight reduction in interest rates can result in substantial savings over the life of your mortgage.
Interest rates and loan terms can vary significantly from one lender to another. Brokers have the expertise and connections to help you secure the best possible deal. They know which lenders are offering competitive rates and which ones might be more flexible with their terms. This can be particularly beneficial if you have unique financial circumstances or less-than-perfect credit.
Even a small difference in interest rates can have a big impact on the overall cost of your mortgage. Over the life of a loan, even a fraction of a percentage point can translate to thousands of dollars in savings. By working with a mortgage broker, you can take advantage of their ability to negotiate better rates and terms on your behalf.
How to Get a Home Loan in Washington State
Whether you’re buying your first house, thinking about a second mortgage, or refinancing, the loan process may seem difficult and complicated when you’re doing it on your own. And if you are ready to make one of the biggest financial commitments in your life – we want to give you the knowledge about getting a mortgage in Washington.
‘A good home buying experience is all about getting as much information as possible from start to the finish.’
An interesting fact is that the average American spends nearly 30 years building up mortgage debt, assuming they can find a mortgage at all. And if you’re a self-employed home buyer or a first time home buyer (FHA), it can be challenging to secure a loan and qualify for a mortgage at the same time. But no worries, it won’t be your story, you’re on the right source already, because LBC Mortgage is a local Washington State mortgage broker who will be able to make it happen for you. We also offer an exclusive option for no closing cost loans in Washington.
So, whether you know something about mortgages or nothing at all – don’t worry. We are about to break down every step. And if you want to know what to expect, what documents are needed, what the mortgage rates are, or how to find a lender – keep reading!
What is a Self-Employed Home Buyer?
Lenders define ‘self-employed’ as a borrower with at least 25% ownership interest in a business or someone who is not a W-2 employee.
If you’re self-employed – you can apply for special programs such as Airbnb loans, landlord loans, Stated Income or Washington bank statement mortgage where you don’t need to show W-2 stubs, or if you want to buy an investment property you may apply for Washington DSCR mortgage loan program or hard money. And just like other applicants, you just should meet the same credit, debt, down payment, and income requirements.
The thing that might be difficult is proving your income. As a business owner, contractor, freelancer, or gig worker, proving your cash flow may need more documentation than for W-2 employees.
However, as long as you match loan guidelines and can show consistent cash flow, being self-employed shouldn’t stop you from buying or refinancing a property.
This informational page source will cover the ins and outs of buying a home as a self-employed home buyer in Washington State, from what you need to know to the best resources to help you along the way.
Get Pre-Approval Before Applying For a Mortgage
There’s a lot to know about buying a home, and one of the first things you’ll want to do is get pre-approved for a mortgage. This way, you know what you’re expected to qualify for and won’t have to rush to find a lender once you’ve decided to buy a house.
Self-employed borrowers don’t have to look for specialized lenders. Most mortgage companies will accept your application with self-employment income.
That means you have the freedom to shop around for the loan type you choose as well as look for a reasonable interest rate.
Keep in mind that almost every lender will base your income on your tax returns. As a result, your earnings may appear lower than they are.
Now let’s take a look at the lenders:
There are two types of mortgage lenders that can approve you for a loan: direct and indirect.
Direct lenders are more likely to approve self-employed borrowers, but, at the same time, indirect lenders will still fund most home loans. Therefore, it would be wise to check both types of lenders to find the finest fit for your needs.
How Much Can a Self-Employed Home Buyer Borrow?
If you’re interested in purchasing a single-family detached home, you’re limited to a mortgage of up to $625,000. However, if you want to buy a condominium or a multi-family property, your mortgage is capped at $453,000.
Homebuyers who don’t fall under these self-employed lending limits can still qualify for a mortgage. For higher loan amount we have exclusive jumbo mortgage program. Nevertheless, they’ll be charged a higher mortgage rate than the rates available to most other home buyers (more details below).
Eligibility Requirements
Most mortgage lenders require borrowers to have a minimum credit score of 620, but self-employed borrowers may be able to qualify for lower rates.
To qualify for a mortgage loan as a self-employed home buyer in Washington state, you should meet the following requirements:
- Be 18 years old or older
- Have a steady income for at least 12 months, certified by an employer, a government agency, or by your tax return
- Meet home value requirements set by the National Association of Realtors
Getting Approval
Once you’ve narrowed down your lender options to two or three, it’s time to start applying. Start by visiting the lender’s website, where you can fill out an application.
Most lenders will ask for basic information like your name, address, social security number, and employment information. You’ll also need to include details about your income, assets, and debt, along with any mortgage goals you have for the next few years.
When you submit your application, be sure to include a copy of your credit report with a detailed financial overview. Credit reports are an important part of any mortgage application, so make sure you have one ready to go.
Unique income situation?
We got you covered, let’s discuss it
Next Steps For Home Buyers in Washington State
Now, after learning all mentioned above, are you ready to get started finding the best rate for your needs as a self-employed borrower? Or maybe do you still have questions and want to know more? Don’t hesitate to contact us today.
LBC Mortgage may hold the key to your homeownership goals!
Our Washington State mortgage broker with extensive experience in markets as well as our large network of lenders means we can help you find the best deals on home mortgages across Washington State. Contact us now!