How To Qualify For A Mortgage As A Part Time Worker

Attaining a mortgage without a full-time job can be challenging, but it is possible. However, because you
work as a part-time does not make have fewer rights than your full-time counterparts. Although there is
no strict definition of the number of hours a person must work to be considered a part-time worker,
there is no strict definition for full-time workers either.

One of the factors that will decide if you can get a mortgage is the ability to make the monthly
payments. However, this is also possible for someone working as a part-time or freelancer, but the bank
will make their findings, to be sure if your income and financial status are stable enough for a loan. So,
below are some of the ways you can prove you’re qualified for a mortgage as a part-time worker.

1. Prepare your financial statements and documents
The first thing to consider before you start your hunt for a home or applying for a mortgage is this. Some
of the common documents you will need to prepare are your paycheck stubs or proof of income, debt
records, expense records, tax returns and proof of assets. Your financial statements will be met with a
greater amount of scrutiny because you work as a part-time. If you don’t prepare these documents
before applying for a mortgage, you might be met with a delay and end up losing out on the home of
your choice.

2. Try and reduce or get rid of your debt and improve your credit score
Be very mindful of this in your financial records, as they can give your lending institution a red flag or
causes an alarm. To your lenders you might look like an irresponsible fellow or make them think you’re
not financially responsible and less likely to be able to repay the loan when you carry ad document with
a large amount of debt.

3. Have some savings for down payment
You can easily eliminate the need for private mortgage insurance when you show that you are able to
save money and financially responsible; so try and have a large enough down payment. When you have
a down payment, you will also reduce the percentage of the home’s value and the size of the loan that
you’ll need. Which in the long run will lower your interest rates.

4. Prove your income or business stability
Kindly give or state the reason why you preferred working part-time. Your explanation might be because
your hourly or project rate is good, and you can earn a reasonable amount in fewer than 40 hours per
week. However, you might experience some challenges to convince the bank that your financial
situation is stable if your explanation is because the company you work for is experiencing cutbacks or
you’re laid off or you have to take care of a sick relative.

5. Show proof of assets
Another thing that would be necessary and can help you prove your financial stability has assets that
you would be able to liquidate. The bottom line is that many financial institutions or lenders believe that part-time workers are not eligible to buy a home. But, if you follow our listed above tips, you might be on your way to being qualified for a mortgage as a part-time worker.

2018-05-01T05:11:18+00:00