Does Loans for Self Employed Really Exist?
There are so many lenders who will request to see your recent paystubs when you apply for a loan and this is often a problem for people who are self employed. There are still some lenders who are considerate of these kinds of situations. Needless to say, the more options you know together with how the procedure is done and what documentation is needed, the higher the chances of getting an approval.
You may also apply for a standard personal loan given the fact that you have met eligibility requirements otherwise, you can file application for cosigner loan. This lets you to still apply for a loan but with another person who is more qualified. Depending on the lender, you might be required to put collateral as a security for the loan you plan to apply.
As for the documents that are asked from you, the first thing that has to be done is to do a background check on the eligibility criteria of the lender to make sure that you can submit the docs and for you to show proof that you are receiving consistent income. Usually, lenders are requiring any or all of the docs below.
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, it could include your loss statements and profit which is intended to support your declared income.
Number 3. Proof of rental income if youre receiving income from rental properties, then you might need to declare this too by using real estate statements or even copies of the executed lease agreements.
Number 4. Latest bank statements this one includes the statement which shows your business 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. Well, you either have to make a photocopy of your ID and fax it to the lender or you may scan it and attach it to your online application.