How to Get a Home Loan on Contractor Income The Step-by-Step Guide
Health Wellness

How to Get a Home Loan on Contractor Income The Step-by-Step Guide

Step Guide


Getting your dream home might just be the ultimate goal out there for many people, and for good reason. Life isn't exactly perfect, and it can get quite turbulent at times, more than we'd like to admit. This is why it helps when you have somewhere to go back to, a place you can call home. Having your dream home is like having a sanctuary, a place you could always fall back to, no matter how dark it gets out there. Yet, unfortunately, getting a home is not easy for many people. To get a dream home, you need money –– probably a loan. And getting a loan on a contractor's income isn't easy, but it's not impossible. This is how you can do it.

Why is it hard?

Many banks think that contractors have volatile jobs, and their income is not steady. This is why they might feel reluctant to give away any loan in these cases. While this isn't true, it's how banks view the contractor job and you need to work your way around this in order to get that home loan.

How do you make money?

The first step in getting a loan as a contractor is determining how you even get paid. Contractors get paid in several different manners. The thing you need to determine is, are you a self-employed contractor or do you have a fixed contract? Then you need to know if the duration of that contract is long or short because banks will want this piece of info. You can read more here about this particular detail as it's probably the most important step in your way to getting a loan. The type of money you get and the associated benefits go a long way in getting you that loan.

The paperwork

Once you've got a grip on which end of the spectrum you are on in terms of contractual pay and benefits, it's time to do the paperwork. A bank wouldn't be prone to giving out any loans unless you can provide some documents they'll definitely want to get their hands on. You'll need everything like pay slips, tax returns, bank statements, HR letter, invoices, and so on, so you could ensure the bank that you have a steady job and a fixed income.

The bank will also need to learn about your contract, and how much remains in it. It's not a deal breaker if it ends in a few months, but they'd have to check previous employment history to understand your employment patterns. If they feel good about that, there's no reason why it shouldn't work out.

You first have to be able to calculate how much money you make, because if you leave that to the bank, things might go sideways. Then, it's important to determine what you want from this loan. How much money will get you where you need to be? It makes no sense getting involved in a loan that you don't entirely need, so be very specific on how much money you exactly need. The interest rates on these loans from banks aren't exactly cheap, and you want to be sure you're getting just the amount you want to build your dream home.

Report this Content
This article has not been reviewed by Odyssey HQ and solely reflects the ideas and opinions of the creator.
Politics and Activism

4 Ways The Plan To Deport International Students Is Dumb, According To An Exchange Student

The whole policy isn't very stay-in-place, if you ask me.

Wikimedia Commons

On Monday, July 6, new federal guidelines were announced that do not allow international students to remain in the U.S. unless they are taking classes in person. Which, if you ask me, is stupid.

Keep Reading... Show less

Naya Rivera Is Missing, And She Deserves SO Much More Than Being Labeled 'Big Sean's' Ex'

We are all sending prayers to Naya Rivera hoping she finds them so we can find her.

I woke up this morning looking to find Naya Rivera's name trending No. 1 on Twitter. I was reading all of everyone's prayers wishing to find her so she can be reunited with her baby boy who is only 4 years old.

Naya's son's name is Lord and the entire collective is hoping the Lord is with him right now. I'm a firm believer in the Fear of God, I hope all of Naya's love is protecting Lord right now.

Keep Reading... Show less

With the coronavirus (COVID-19) pandemic still surging in the United States, where we are averaging 50,000 cases daily, wearing a face mask has become even more important. Dr. Anthony Fauci, the nation's top infectious disease expert, has stressed the importance of wearing a mask and is pleading Americans to take notice of the "disturbing" rise in cases. It would be common sense to listen to him, considering we are dealing with a virus that has a mortality rate higher than what we have seen with other viruses.

Keep Reading... Show less

It's your fairy sex godmother back at it again and here to tell you that masturbating is an essential need, just like toilet paper.

It comes with so many benefits, besides cumming. According to the New York City Health Department, "you are your safest sex partner" during a pandemic, so why not use the best toys to get the job done? Shopping for the best fit can be tricky because there are a few factors to consider — whether it's the price point, experience, sound, and more.

Keep Reading... Show less

These 3 Smoothies Totally Cleared My Acne-Prone And Scarred Skin

How I drank my way to flawless skin.

With this summer being the first of its kind for most people to be in the midst of a global pandemic, almost everyone is beginning to have an overall focus on improving their health.

Keep Reading... Show less

Everyone remembers the first time they went to one of the Disney parks. Spinning in teacups and having Goofy wrap his arms around my 8-year-old self were some of my fondest childhood memories, and I'm surely not alone in that.

Keep Reading... Show less

These Superfood Beauty Products Show Kale And Matcha Work For SO Much More Than We Thought

Just another summer's day with a cold glass of kombucha on my face.

I've been vegan for about six years now, so a love for fresh vegetables and superfoods has now become a core part of my being. Don't get me wrong. I love my indulgent, creamy pastas and truffle fries more than anyone. But I keep most of my focus on eating clean and healthy so I can indulge guilt-free.

But I'd say about a large part of my diet has always, unknowingly, included superfoods. Being Indian, lentils, beetroot, garlic, ginger, and whole grains have been core essentials on the family dinner table since I could digest solid foods.

Keep Reading... Show less
Facebook Comments