Does Loans for Self Employed Really Exist?
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. 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. 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. Usually, lenders are requiring any or all of the docs below.
Number 1. Tax return for tax return, the best thing you can do is provide the last couple of years of your company and full personal tax returns. 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 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 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. 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.