Did You Know - What Self Employed Home Loan Applicants Have To Be Prepared For
There are about 20 million active consumers in SA, with a staggering 50% of these having a tarnished credit record and not eligible for loans.
Self employed’s are a category of borrowers to whom banks require extra attention to be given to the:
• Extent of deposit available (usually 20% is safe)
• Operating performance of business
• Period since business commencement
• Existence of any personal loans
After that, the home loan provider will need to start the credit assessment process and there will be quite a few requirements around submissions of financial statements. Usually at least a 3 year track record of (preferably) audited statements together with bank statements and management accounts.
Concentrating and preparing for these issues will help to expedite the process and get you closer to what you ultimately want - an approved home loan!