Connect with us

Business

5 Tips for Obtaining a Mortgage if You’re Self-Employed

mm

Published

on

Being self-employed can be a great way to make a living, but it also has its own unique set of challenges. One of the biggest is obtaining a mortgage. Many lenders are wary of self-employed borrowers because they don’t have the same income stability and proof of income as those with regular 9-to-5 jobs. However, that doesn’t mean taking out a mortgage is impossible if you’re self-employed. You can do some things to improve your chances of getting a mortgage, including using non-traditional lending. Here are five tips to help you on your journey and some alternative credit examples.

Know Your Credit Score 

One of the first things to do when applying for a mortgage is to understand your credit score. Lenders will look at this number to determine how likely you are to pay back your loan in full and on time. A good credit score (typically anything above 600) will give you an edge when applying for a home loan, so make sure you know where you stand before diving into the application process. You can check your credit score online for free or purchase one from one of the major credit reporting bureaus like TransUnion or Equifax. 

Gather Your Paperwork 

Before applying for a loan, ensure that all of your paperwork is in order and easy to access. This includes everything from tax returns and bank statements to business licenses and profit and loss statements. Having these documents ready will speed up the application process significantly. Lenders won’t have to wait around while you scramble to find them. 

Prove Your Income Stability 

Since lenders need assurance that they’ll be paid back in full, having proof of income stability is key when applying for a mortgage if you’re self-employed. Most creditors will require two years’ worth of tax returns along with any other paperwork that proves your ability to pay back money owed (such as business licenses).

Try to provide evidence that shows your income has been steadily increasing over time. This helps demonstrate financial responsibility, which can significantly boost your approval chances.  

Show Proof Of Assets And Liabilities 

In addition to proving income stability, lenders may also want proof that you have enough assets available should something happen, and payments need to be made late or missed altogether. This could include savings accounts, investment portfolios, etc. Also, showing them any liabilities such as loans or other debts owed could show them that while these obligations exist, they aren’t too large, where they would interfere with making payments on any new mortgages taken out.  

 

Look Into Non-Traditional Lenders 

Suppose traditional lenders such as banks are not approving your loan applications due to a lack of income verification or low credit scores. In that case, consider looking into alternative lenders, such as online lenders or private investors, who offer different types of loans with more flexible requirements than traditional banks do. These types of lenders often have fewer restrictions when it comes to approving applicants who cannot provide two years’ worth of tax returns or have lower credit scores than what banks typically prefer. While these alternative credit examples can come with higher interest rates than those offered by traditional lenders, they could still be beneficial in helping you obtain financing if other options are not available. 

Conclusion 

Getting approved for a mortgage if you’re self-employed can be difficult but not impossible. By following these tips, you’ll be well on your way toward achieving homeownership quickly and securely. Success when applying for a mortgage as someone who is their own boss won’t be too far behind.

The idea of Bigtime Daily landed this engineer cum journalist from a multi-national company to the digital avenue. Matthew brought life to this idea and rendered all that was necessary to create an interactive and attractive platform for the readers. Apart from managing the platform, he also contributes his expertise in business niche.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

From Contracts to Counsel: Your Essential Guide to Hiring a Probate Attorney in Chicago

mm

Published

on

Like many people, you’ll come across the term probate after a loved one, such as a parent or spouse, passes away. So, what is probate, and why do you need an attorney for it? As defined in Forbes, probate is a legal process that occurs after death. It entails transferring the assets of the decedent (the person who passed) to beneficiaries named in their last will. 

With that in mind, having a probate lawyer by your side is essential. The last thing you want to do is deal with the legal complexities of settling a loved one’s estate while grieving. A probate lawyer oversees the validation of the deceased’s will and the fair distribution of assets among family members. One challenge lies in finding a top-quality probate lawyer.

In this guide to hiring a probate attorney in Chicago, we’ll discuss the tips to identify the right legal professional for probate proceedings. 

Understand the Responsibilities of a Probate Lawyer

It’s difficult to hire a talented probate lawyer when you don’t know what they do: Start by understanding the roles they play. 

When you work with a Chicago probate lawyer, some tasks they might do include: 

  • Act as an estate executor or administrator 
  • Collect proceeds from the life insurance policies of the deceased
  • Identify and secure the decedent’s assets
  • Get an appraisal for the deceased’s estate
  • Pay debts and resolve estate tax issues
  • Prepare and file documents required in probate court
  • Transfer assets to rightful heirs
  • Represent you in litigation proceedings if someone challenges or contests the will

A probate lawyer could also help you and your family navigate state inheritance laws if a loved one dies without a valid will. That way, you can avoid unnecessary taxes or other ramifications of not creating a will, such as losing ownership rights of the deceased’s business or financial support.

Search for Lawyers Online and Offline

You’re probably thinking, where do I find the best lawyer to hire? You could seek referrals from friends or colleagues. Friends who worked with probate attorneys before might provide important details, such as how the lawyers communicate and handle the probate process. 

Alternatively, do a simple online search using the terms “probate lawyer near me” or “probate attorney in Chicago.” Go through various websites or online directories and write names of lawyers with positive ratings and customer testimonials. Then, contact the potential lawyers to set up free consultations. Note that not all legal professionals offer free consultations, so make sure to ask before setting a time in your calendar. 

Ask the Right Questions

A free consultation provides opportunities to ask questions to better understand if the lawyers in question have the qualifications to handle your probate case. 

Four questions you might ask attorneys during the initial meeting may include:

  1. Do You Have Experience in Probate Law? 

When evaluating lawyers, prioritize experience. An experienced probate lawyer is aware of common pitfalls that can result in the probate petition being postponed or dropped by a judge. To feel more comfortable about an attorney’s expertise, ask them if they’ve handled probate cases similar to yours before. 

For example, let’s say the deceased owned a substantial estate or had complicated assets like royalties and mineral stocks. Working with an attorney with a track record of successfully handling cases like that could save you time and money in the long run.

  1. What Do Other Clients Say About You?

Experience alone doesn’t make a probate lawyer perfect for your case. Look for someone with an outstanding reputation. These reviews likely live on Google next to their business profile or are featured on their website. If you can’t find any endorsements, ask for testimonials written by past clients. 

One point to focus on is what reviewers say about the lawyer’s efficiency and speed. Beyond that, does the lawyer offer expert guidance, conflict mitigation, and proper asset management during probate? 

A probate attorney in Chicago, IL, should be an efficient expert in asset preservation. This can be crucial to helping avoid hefty taxes and excessive debt claims. Additionally, if the lawyer receives positive feedback on conflict mitigation, it suggests they have experience in resolving or mitigating family conflicts that tend to stall the probate process. 

  1. How Long Does Probate Last? 

One way to test a probate lawyer’s knowledge is by asking them, “How long does probate last?” While the numbers vary, probate can last for a few months to over a year in many states, including Chicago. When highlighting factors that affect the duration of probate, your counsel might mention things like estate size, family disputes, debt and taxes, absence of a will, and state laws.

A knowledgeable lawyer can explain clearly why your probate case could last a few months or even years. A lawyer that makes too brazen or hard-set of promises might not be the most honest. 

  1. How Do You Want Us To Communicate? 

There’s no hard rule on how you and your probate attorney communicate. You can talk via text messages, email, video calls, or phone calls. More importantly, check that the attorney communicates in simple language to help you understand your case. 

In fact, one essential of a lawyer’s dos and don’ts to gaining clients’ trust is to avoid making clients feel clueless. If a potential lawyer uses complex legal terms or avoids communicating directly, search for probate services elsewhere.

Conclusion: Finding a Probate Attorney in Chicago

Reviewing the will of a loved one after their death and ensuring fair distribution of their assets often involves complex legal issues. For this reason, consider hiring an attorney who specializes in probate law. 

To maximize your chances of finding the right probate lawyer, familiarize yourself with their responsibilities. Next, search online for lawyers within your state or ask for recommendations from people you trust. Then, interview prospects to help ensure they possess experience, a remarkable reputation, communication skills, and knowledge of probate law.

Settling the affairs of a loved one who has passed on can be an overwhelming time. A probate attorney can help lift some of the pressure off your shoulders as you focus on grieving and healing. 

Continue Reading

Trending