Does Loans for Self Employed Really Exist?
For those who are self employed, applying for a loan is always a challenge for they are often requested to provide a paystub for which they typically not have. But dont fret as there are lenders who are being considerate of their clients position. 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 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. Here, this enables you to apply for a loan with another person who seems to have stronger and better qualifications. Depending on the lender, you might be required to put collateral as a security for the loan you plan to apply.
As for the documents that are asked from you, the first thing that has to be done is to do a background check on the eligibility criteria of the lender to make sure that you can submit the docs and for you to show proof that you are receiving consistent income. Normally, the lenders will ask you any or all of the following.
Number 1. Tax return for your tax return, the least that you have to provide is the last two years of your company and full personal tax returns. 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 say for example that you are receiving income from any rental properties, then you may also declare this using real estate statements or even copies of the executed lease agreements.
Number 4. Latest bank statements this will include the statement showing your transactions and savings. It might even include statements that shows credit cards or other outstanding loans that you have with other lender.
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.