How to Apply Loans for Self Employed?
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. But dont fret as there are lenders who are being considerate of their clients position. 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 can even go for a standard personal loan assuming that you were able to meet the eligibility requirements but if not, you may opt for a 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. Usually, lenders are requiring any or all of the docs below.
Number 1. Tax return submitting the last two years of company and full personal tax returns would be the least thing you could do. 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. It can actually include statements showing your credit cards or any outstanding loans you have to other lenders.
Number 5. Company specific info if you have a business, then you have to be prepared in providing information such as 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.