What to do if a self-employed person is denied a mortgage
Posted: Sun Jan 19, 2025 4:47 am
The first thing you need to do is understand the reasons for the refusal. Most often, the refusal is related to insufficient income, instability of income, or problems with the credit history. Once you understand the reasons, you can take steps to eliminate them.
If your credit history is the problem, focus on paying off current debts and avoiding new late payments.
To increase your chances of getting approved for a mortgage in the future, focus on strengthening your financial position: Maintain a stable income and try to show an increase in it a few months before you apply again. Save a little more for a down payment.
View a mortgage denial as an opportunity to rethink uruguay whatsapp number data your strategy and take steps to improve your financial situation.
Mortgage refinancing for the self-employed
Refinancing a loan is a profitable solution if the current mortgage terms do not correspond to the borrower's financial capabilities or market conditions. In order for the bank to approve mortgage refinancing, the self-employed person must confirm their solvency by providing an account statement and/or a certificate from the My Tax application confirming income and tax payments.
Banks refuse to refinance a mortgage in several cases:
the presence of overdue debt from the client;
facts of delays lasting more than a month over the last six months;
using maternity capital for a down payment or partial repayment of a mortgage;
restructuring of an existing loan: changing the terms of the loan agreement at the client's request. If the bank has already extended the loan term to temporarily reduce or suspend monthly payments, then refinancing will most likely be refused.
If your credit history is the problem, focus on paying off current debts and avoiding new late payments.
To increase your chances of getting approved for a mortgage in the future, focus on strengthening your financial position: Maintain a stable income and try to show an increase in it a few months before you apply again. Save a little more for a down payment.
View a mortgage denial as an opportunity to rethink uruguay whatsapp number data your strategy and take steps to improve your financial situation.
Mortgage refinancing for the self-employed
Refinancing a loan is a profitable solution if the current mortgage terms do not correspond to the borrower's financial capabilities or market conditions. In order for the bank to approve mortgage refinancing, the self-employed person must confirm their solvency by providing an account statement and/or a certificate from the My Tax application confirming income and tax payments.
Banks refuse to refinance a mortgage in several cases:
the presence of overdue debt from the client;
facts of delays lasting more than a month over the last six months;
using maternity capital for a down payment or partial repayment of a mortgage;
restructuring of an existing loan: changing the terms of the loan agreement at the client's request. If the bank has already extended the loan term to temporarily reduce or suspend monthly payments, then refinancing will most likely be refused.