Buying a home is not always a straightforward process. Things can become even more complicated if you are a home-based small business owner looking for a new space. Banks and other lending institutions view small business owners as riskier than employed and salaried workers. They may demand more insight into your financials, and it may be harder for you to prove the stability of your revenue.
If you are building a home-based company, then you will need to look for a house that can accommodate the needs of a growing business. You will need a mortgage to help you purchase it. And you will need to find a lender that can offer a range of mortgage loans to choose from. However, the kind of loan you take out is only one factor to consider.
Here are 5 tips for home business owners:
1. Declare Your Income with Perfect Accuracy
If it is possible, you should wait until your company has been in operation for at least two years before you purchase a new home. This will give you the kind of revenue and tax documentation that lending agencies will want to see. You should always report your income accurately. Failure to do so will make it harder to secure a loan.
2. Look to Credit Unions
Credit unions are becoming some of the country’s leading mortgage lenders. Home-based business owners taking steps towards buying a new house should meet with a loan officer at their local credit union. They generally offer better rates and reasonable approval processes compared to traditional banks.
3. Make Your Case In-Person
Although it is possible to apply for a loan online, you should meet with your prospective lender in-person. In the end, people decide who gets a loan and who doesn’t. Meeting with a loan officer will allow you to make your case. It will also give you the chance to ask for assistance. The person you meet may know of special programs that can help you secure the mortgage you need.
4. Find the Right House for Your Business
If the growth of your business has exceeded the limits of your current home, you should look for a house that is large and commodious enough to meet present and future demands. You should consider what your needs are likely to be 4 or 5 years in the future and choose your home accordingly. The design and layout of the house should be compatible with the requirements of your business.
5. Find a Place Close to Clients
Being a home business owner means meeting clients and partners in your house. You don’t want to make it too inconvenient for them to do so. You also want to be near enough to client and partner hubs so that you can get to their offices for unplanned meetings without any trouble. You want to choose a location that is good for your family, and that gives you convenient access to clients, partners, suppliers, and other important venues and organizations.
Buying a new house for your home-based business is an investment on many levels. It is a capital purchase for your company and a personal investment for you and your family. You should take your time when considering houses and mortgage options. You must put together the right combination of the two to ensure that your business continues to thrive and that your family life does not unduly suffer.
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