When it comes to buying homes, people think that they need to have a stable job. The thought of a stable job may mean being part of a payroll. But this is not an absolute rule in the era of the gig economy. The work setup of modern times is fluid and flexible. Gone are the days when people had to stick to one job. Nowadays, you can work for one or two employers. These can be in contract or contingency modes. In essence, gig workers do not have a fixed income compared to full-time workers. Regardless, many gig workers are able to make more money due to the flexibility they have in terms of work.
If you are a gig worker looking to buy a home, you may have the impression that things are going to be difficult, especially in the mortgage department. But that should not be the case. Below are some important guidelines that will help you deal with your property acquisition.
List down the necessary document requirements
Some document requirements and paperwork are much easier to accomplish if you are working full-time. You will just have to ask your human resources department, and they may assist you. What you need to do at this point is to gather the necessary paperwork such as tax returns, your business’ profit and loss statement, and a list of debts. Dependable mortgage lenders in Utah may provide you with a list of all the things that you need to accomplish.
Check your credit rating
Mortgage lenders always check borrowers’ credit rating to gauge their reliability as far as payments are concerned. Just like other regular borrowers, gig workers must make sure that they have good credit standing. To achieve that, you will need to pay a majority of your debts. Other than paying your debts, you need to see to it that your credit history and pertinent records are updated and accurate.
Start saving money for the down payment
If you want to get a head start on your home acquisition, you should pay the down payment. Save up for it by setting aside a portion of your earnings per month. Be clear with your savings goals. Ideally, make sure that your savings will also cover the auxiliary expenses such as closing costs and moving fees.
Work on your pre-approval
A pre-approval means that you are eligible to buy a property, and this is what you should prioritize if you are a freelancer. A pre-approval is also a form of security that you will be able to borrow a certain amount of money with a specific interest rate.
Being a gig worker still allows you to get a home or a real estate property. You will only need to prove that your stream of workload is constant and stable. Nevertheless, there are some documents and related requirements that you need to accomplish to make your purchase easy. If this is something that you are having trouble with, it pays that you seek the services of a reliable professional.