Step 1: Pre-approval (1-3 days)
The first step in the process of getting a self-employed home loan is to get pre-approved by a lender. This involves submitting an application and providing documentation of your income and financial situation. The lender will review your application and determine how much you can borrow and what interest rate you qualify for. Pre-approval typically takes 1-3 days, although it can take longer if you have a more complex financial situation.
Step 2: Property appraisal and underwriting (1-4 weeks)
Once you have been pre-approved, the next step is to find a property and have it appraised. The lender will require an appraisal to determine the value of the property and ensure that it meets their lending criteria. The appraisal process can take anywhere from a few days to a week or more, depending on the availability of appraisers in your area.
After the appraisal is complete, the lender will begin the underwriting process. This involves verifying your income, credit history, and other financial information to determine if you meet their lending criteria. Underwriting can take anywhere from a few days to several weeks, depending on the complexity of your financial situation and the lender’s internal processes.
Step 3: Closing (1-2 weeks)
Assuming your loan is approved, the final step in the process is closing on the loan. This involves signing the loan documents and transferring ownership of the property. Closing typically takes 1-2 weeks, although it can take longer if there are any issues with the title or other legal matters.
Overall, the process of getting a self-employed home loan can take anywhere from a few weeks to a few months, depending on the complexity of your financial situation and the lender’s internal processes. To ensure a smooth and timely process, it’s important to work with a lender who specializes in self-employed home loans and has experience working with borrowers in similar situations.