People have many dreams, but one that is the most desirable is buying something big. Buying a house is the dream for every person. There are difficulties that are faced by all kinds of buyers; especially for those who are working as a freelance or are self-employed.
Problems Freelances and self-employed people face
While most people think that working freelance is a gift where you can do your work on your own time; but there are drawbacks to it. The main problem is buying a house because the availability of finances is tight. But experts recommend selecting Stop renting start buying because it is safe to invest money in this option.
Not able to show the source of Income
The freelancers have to face the problem that there is no definite proof of the income because the people who hire you are different and the income is never constant. So sometimes there is no documentation of the income as many of the payment in cash and is noa record of it.
Not getting adequate work
Self-employed people have a big issue is that there is no consistency in getting work. There are days when you can have loads of work but on others,the work is limited or not at all. This disrupts the constant flow of income that becomes a big hurdle in collecting money for the house.
Doing all work alone
There are many freelancer jobs in which all the work has to be done by a single person. The main reason is that the person can’t afford to hire staff so everything has to be done by the same person. This doesn’t give the freelancer much time to look for the house.
Money Management is a Problem
As it is discussed that the self-employed have an unstable source of income; so this affects the savings as well. This makes difficult for the person to manage an unsteady wage. You are not able to pay the bills, save money for buying the house.
Working on a sick day
If you are working in an office then you can take leave, go home and take rest. But when you are working freelance; it is very unlikely that you take a day off on a sick day.
Unable to Control the Finances
The disruption in the income is a major problem and this makes the situation complicated as the finances become uncontrollable. There are many experts like Stop Renting Perth that can help you manage everything.
Tips for Freelances and self-employed buy a house
If you are freelance then the main concern for you is how to buy a house as you are unable to arrange proper money. There are a few tips that you can follow to prepare for buying the house.
Check the History of the Credit Score
Checking the credit score history is vital because this can affect the availability of loan. There are many lenders demand the borrowers to have a good credit score as high as 600. But others can request less than 500 scores.
Assembling the Important Paper Work
There are certain documents that you need to assemble to give to the lender and at the time of deal-making. These include proof of income, personal and job details, papers for a loan and other important documents.
Try to Increase the Income
Freelancers can negotiate the cost of their work. This can be done by increasing the experience of the work. You can also increase the quality of your work which ultimately boosts the money that you demand your work.
Make arrangements for Saving Money
The best way to save money is by cutting down expenses as much as possible. Budgeting is the main thing that you can do and sticking to that pattern if you want to collect the money for the house.
Stop renting start buying option
One option that is very useful for freelancer and self-employed is to rent the house before you buy it. One advantage that you get is you come to know the house before you actually buy it. This gives you a chance to rent the house first and if you like it you can buy it.
Search for a house that suits you
You need to search for a house that is according to your budget and the size you require. This requirement of the size of the house depends on the kind of work you do. Just search for a house that suits you.
Hire a Real Estate Agent
A problem discussed above is that sometimes the freelancers don’t have the time for any kind of personal things and especially for house buying. So they need to hire a real estate agent to do all the work for you.
Choose an Appropriate Location
Many freelancers and self-employed want to stay near where there are the most commodities and facilities. Or you can keep the work near where you have most of your clients. Although it is difficult to do that you can choose the location that is in the middle of everything.
See what Loan Option you have
You have to be wise to select amongst the loans for your house whether it is a simple or Stop renting start buying scheme. You need to do research before you make any kind of deal.
David Kramer is a writer located in California, USA. He is passionate about writing. David is helping people who want to buy their own house. David is currently writing on Stoprenting perth. David loved to share his stories online.