Does Loans for Self Employed Really Exist?
There are a lot of lenders who will ask to see your recent paystubs whenever you start to apply for a loan and this is a problem for all those who are self-employed. But dont fret as there are lenders who are being considerate of their clients position. Obviously, the more options that you know along with how the procedure is being done and to what documentation is required, the higher your chances of being approved.
You might even apply for standard personal loan as long as you have met the eligibility requirements or else, you may file application for cosigner loan. What happens with a cosigner loan is, you are allowed to apply for a loan but with the help of another individual who has stronger qualifications. Depending on your lender, you may be requested to put collateral as security for the loan that you are planning to apply.
With regards to documents provided, the very first thing that you must do is to check the lenders eligibility criteria to guarantee that you can actually provide the docs and also, to show proof that you receive stable income which is vitally important. Normally, the lenders will ask you any or all of the following.
Number 1. Tax return for your tax return, the least that you have to provide is the last two years of your company and full personal tax returns. These are important for it proves income youve declared to your application.
Number 2. Financial statement for this one, it might include any loss statements and profit, which is also used to support your declared income.
Number 3. Proof of rental income the real estate statements or even copies of the executed lease agreements can be used in order to help you declare incomes that you gained from your rental properties.
Number 4. Latest bank statements as for this one, it is going to require statements showing your transactions and savings. Say that you have outstanding loans to other lenders or credit cards that are being paid, it will all reflect to this one.
Number 5. Company specific info say for example that you own a business, then it is a must to come prepared with information similar to EIN of your company, address and so forth.
Number 6. Personal identification in relation to this matter, itll likely fall on your lenders discretion but most of the time, what they are asking are passport, state ID or drivers license. In this regard, there are a couple of things that you can do and one is to scan the ID and attach it to your application online and two, photocopy it and fax it to them.