How to Apply Loans for Self Employed?
There are a lot of lenders who will ask to see your recent paystubs whenever you start to apply for a loan and this is a problem for all those who are self-employed. But dont fret as there are lenders who are being considerate of their clients position. Basically, expanding your knowledge on all possible options and knowing how it is done and to what are the needed documentations increases your odds of being approved.
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. 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. During your loan application, you probably have declared your income and the tax return will be used as supporting document.
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. 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 now this one will depend on the lender you are talking to but they may ask of your passport, state ID or drivers license. You will either need to photocopy your ID and even fax it to the lender or perhaps, scan it and then attach it to the email of your application.