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. However, there are still several lenders who are sympathetic of your situation. Obviously, the more options that you know along with how the procedure is being done and to what documentation is required, the higher your chances of being approved.
You might even apply for standard personal loan as long as you have met the eligibility requirements or else, you may 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. Most of the time, it will depend on the lender you are talking if they will ask you to provide collateral as security for the loan.
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. In most cases, the lenders would need you to submit any or all documents 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 would prove any income that you have declared on your loan 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 this will include the statement 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 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 now this one will depend on the lender you are talking to but they may ask of your 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.