California Mortgage Refinancing

If you're self-employed and looking to purchase your own home in California, you may be aware that finding a California mortgage refinance can be more difficult than if you're fully employed by a company. Most providers require evidence of a regular salary and stable employment before they will lend you money. Obviously it may be difficult to supply these things when you work for yourself.

Fortunately, there are ways you can increase your chances of being accepted for a California mortgage refinance. Firstly, you will need to keep records of all your financial incomings and outgoings. These should be as comprehensive as possible because you want your provider to see that you are responsible and can stick to a budget. The general rule of thumb is to keep records of your business for the last three years. These are pre-requisites that most providers set to determine if you are worth lending to. Your records should show steady profit so that your business is viewed as your main form of employment and not simply a pastime or hobby on the side.

Secondly, you will need to prove that other forms of debt are low since you will be accruing new debt with your new California mortgage refinance. The more debt you have, the less you will be able to borrow for your self-employed mortgage. However, don't assume that just because one bank or financial institution turns you down that others will do so. You need to research the market and contact several providers to find out what their terms and policies are for loaning to the self-employed. Some will even specialize in loaning to “entrepreneurs” so don't be put off. Make sure you research all your options online and speak to people who have the right experience.

While obtaining a mortgage refinance may be more difficult if you are self-employed, it is certainly not impossible. If you can prove you are stable, diligent and have a responsible attitude toward money management, you should be able to find a loan that meets your needs.