How do I get a home loan as a sole trader?
Buying property can be scary and confusing for a lot of different reasons. Where do you begin? Today we will be talking about home loans and our most commonly asked questions. Empire Industry Finance works closely with Rhianna from My Savvy Broker in helping our clients successfully get home loans!
How much money do you need as a deposit as a sole trader?
You need a minimum of 5% of what you want to borrow, plus costs which you should allow up to 5K for. This 5% needs to be in your account over 3 months, unless we use your rental ledger to show you can pay your mortgage on time. This means you need to show the bank that you have been saving over a time period – which is why it is important to put cash into your bank account.
How many years of tax returns do you need as a sole trader?
2 years currently due to COVID-19.
How long does the process take?
You can’t talk to a mortgage broker too soon! When you are ready it will be easy for you if you have been given a plan and an idea of what you need to buy your first property. The whole process is dependent on your individual situation and what is needed.
How does pre-approval work?
Home loan pre-approval means that a lender has agreed, to lend you money towards the purchase of your home, but has not proceeded to full or final approval. Getting pre-approval for your home loan allows you to look and enquire with properties.
Pre-approval happens once your broker has all of the documents they need – this can include your last tax returns, business activity statements, bank statements and other information. Empire works closely with My Savvy Broker and can streamline this service for you.
Once all of this is collected it takes a maximum of 2 weeks to get pre-approval. Pre-approval lasts for 3 months.
First Home buyer plan with My Savvy Broker
If you’ve been dreaming about owning your own home but don’t know exactly what is required or where to start then a personalised First Home Buyer Plan is for you! You will leave this session with the scene set, your questions answered, feeling confident, and empowered to keep saving towards your first home. For more details on this please email Rhianna: firstname.lastname@example.org.