Self-employed? Tips to help you navigate the mortgage process

(BPT) – Sponsored ad content by Vanderbilt Mortgage and Finance, Inc.

When you’re self-employed, you often work harder than anyone else you know. That’s what it takes to be your own boss. While rewarding, it comes with a lot of added responsibility. This is especially true when applying for a mortgage.

“Self-employment can complicate the mortgage process for one very simple but critically important reason,” says Eric Hamilton, president of Vanderbilt Mortgage and Finance. “Lenders need to know you will have the income to afford a loan payment. This sometimes requires people who are self-employed to provide more detailed information and paperwork than those who are traditionally employed.”

Proof of income

It’s not only good business sense for lenders to know a borrower can afford a mortgage before they make a loan, federal law also requires they do so. The evaluation process typically requires fewer steps for people who aren’t self-employed — those who get a salary for working for another person or company. The lender will review the applicant’s total income, existing debt, credit history and score, as well as other factors, and base the decision on that information.

However, when you’re self-employed, proving your income can be more complex. About 10 percent of people working in America are self-employed, according to the Bureau of Labor Statistics (BLS). If you’re among those 15 million people, it can be more difficult for you to document your income and prove you can afford to pay back the amount you’re asking to borrow.

“Lenders may ask self-employed applicants to complete a 4506T form, which allows the lender to look at the applicant’s tax documents, including recent income filings,” Hamilton says. “They will also likely request a professionally prepared profit-and-loss statement and balance sheet for the business to show you have steady income throughout the year between tax-filing times.”

Improving your chances of approval

Fortunately, if you’re self-employed, you can take steps to be better prepared when beginning the mortgage application process. Hamilton and the team at Vanderbilt, which specializes in financing mortgages for manufactured homes, offer some tips:

* Before you apply for a loan, pay off as much debt as possible. Mortgage lenders will consider your debt-to-income ratio, which compares your total income to the total amount you owe.

* Save up a substantial down payment.

* Work to improve your credit score by paying all bills on time and reducing your debt. Payment history and credit-utilization ratio (the total credit you have available compared to the amount you’re actually using) are important factors in determining your credit scores.

“Being prepared before you start a mortgage application and getting your finances in order can help make the mortgage process go much smoother,” Hamilton says. “The mortgage application process is just one step on your journey to home ownership, but it’s an important one.”

To learn more about mortgages for manufactured homes, visit www.VMF.com.

All loans subject to credit approval.

Sponsored ad content by Vanderbilt Mortgage and Finance, Inc.

NMLS Disclosure

Vanderbilt Mortgage and Finance, Inc., 500 Alcoa Trail, Maryville, TN 37804, 865-380-3000, NMLS #1561, (http://www.nmlsconsumeraccess.org/), AZ Lic. #BK-0902616, Loans made or arranged pursuant to a California Finance Lenders Law license, GA Residential Mortgage (Lic. #6911), Illinois Residential Mortgage Licensee, Licensed by the NH Banking Department, MT Lic. #1561, Licensed by PA Dept. of Banking.

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2017 looking bright for small business owners

(BPT) – The year 2017 is still in its infancy, but research shows small business owners feel this year could be one of the best in recent memory.

A new survey, commissioned by Staples and conducted by Wakefield Research, found that 85 percent of small business owners surveyed reported feeling “optimistic” about the small business climate in 2017. That’s good news for the owners as well as for their communities, because for many, this optimism is motivating owners to put earned revenue directly back into their businesses and employees.

According to the research, 97 percent of respondents said they plan to increase investment in their companies this year, while 67 percent plan to hire new employees. Those fresh hires also appear to be in line for better benefits, as 72 percent of small business owners report they plan to increase staff compensation in 2017.

“We conducted this survey to better understand the pulse of small business owners and to further identify those priority product and service areas in which we can help our customers achieve success in 2017,” says Frank P. Bifulco Jr., chief marketing officer, Staples.

The survey included 502 small business owners across the country. For purposes of the research, small businesses were defined as companies that had 10 or fewer full-time employees.

While the research found that small business owners are optimistic about 2017, it also provides a favorable outlook for the years ahead. In fact, many small business owners report they hope to make small business ownership a family tradition. Ninety-one percent of those surveyed said they would encourage their children to start their own business, and 93 percent said they felt running their own business was the best kind of job satisfaction there was.

Finding the tools to support small businesses

For small business owners across the country, optimism can often be directly tied to market success and having the proper tools to support future growth. Staples Print and Marketing Services offers a comprehensive suite of services, providing everything from business cards and logo design to marketing materials and signage.

Small business owners can find additional support materials online by visiting Staples.com and the Staples Small Businesses Hub. The Hub is a resource that offers expert tips, information and industry advice – everything a small business owner needs to grow their business in 2017 and feel even more optimistic in the years to come.

To learn more about how Staples can support the initiatives in your small business, visit Staples.com.

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