Freelancers: How to get approved for a house loan

Freelancers who want to #buyahouse #getabankloan approval, what should they do?

Freelancers who want to buy a house and live in it, how should they get a bank loan approved?
If they can't buy with cash, they don't have the same stability as full-time employees.


When freelancers want to own a house and get a bank loan, how can they avoid rejecting the loan? It's not impossible compared to full-time employees, but they need to put in more effort than full-time employees to save from their income.

Have sufficient cash flow through their bank accounts. Keep tax and social security records, show the location of their personal workplace and permanent residence, and clearly show their income in their bank accounts. They shouldn't have excessive household debt, including credit card debt or future spending.

Even though they earn more than salaried employees, they can still buy with cash. However, these days, there are more job-related concessions, perhaps due to the increasing number of freelancers and the need for banks to expand their customer base.

For a simple guideline on how to prepare for a house loan application, the Government Housing Bank's Real Estate Information Center has compiled the following information to help you make a decision:

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Clear your credit, avoid debt, and avoid any credit bureau issues.

Keep in mind that for freelancers, banks and financial institutions will view you as someone with an unstable income. Even if your monthly income is high, it can fluctuate to low, or if you don't have work coming in, you could end up with zero income. Therefore, if you don't have good credit,

and have debts that need to be paid off monthly, such as car loans, mobile phone loans, credit card debt, etc., your chances of getting approved are even lower. Furthermore, if you have a poor repayment history, frequent late payments, and a credit bureau record,

this can almost completely close the door on loan approval. Therefore, if you're planning to apply for a house loan, it's important to thoroughly examine your credit and clear any existing debts. This will increase your chances of getting approved.

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Provide clear documentation of your income and income stability.

Before applying for a house loan, freelancers need to gather financial documents to clearly demonstrate your income stability to the bank. This includes a bank statement showing your bank account status for at least the past 4-6 months, so the bank can see how much income has been deposited into your account. And how consistently and consistently?

In addition, you should have documentation demonstrating your personal income tax status to build credibility with financial institutions that you've paid your taxes correctly and completely. This includes other documents such as receipts, withholding tax certificates, and employment contracts with employers, etc.

These documents will help build credibility, demonstrating that even as a freelancer, you have a stable income sufficient to cover the installment payments for a house loan.

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Collect savings and other assets to support your loan application.

Having savings or other valuable assets to demonstrate ownership is like having freelancers secure the assurance that even if your income is unstable, you'll have money or valuable assets to use to resolve your debt problems if you need to repay a debt.

Whether it's savings bonds, stocks, bonds, life insurance, or even land, the more savings, idle cash, and valuable assets you possess, the better your chances of getting a house loan approved, even as a freelancer.

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Jointly borrowing to increase your chances of getting approved for a house loan.

This is a strategy that significantly increases the chances of getting approved for a house loan by freelancers. This is especially true if the person you're applying for with is a regular employee with a stable salary, good credit, and a strong income. This significantly increases your chances of getting approved. A joint loan combines the financial status of both parties.

This creates greater financial stability and the opportunity for smooth repayment. However, the person applying for a joint loan should be a relative, sibling, or family member, or a couple planning to get married to avoid conflicts or arguments that could lead to problems with a joint loan later on.

Although freelancing offers significant income potential and the potential for growth, banks still view it as an unstable career. Banks often underestimate freelancers' income.

For example, if a freelancer earns an average monthly income of 100,000 baht, the bank may only underestimate 30-70% of your income, or 30,000-70,000 baht per month. This can be especially difficult if your average income is low and you have debt. This will further underestimate the ability to repay, which is why most freelancers are rejected for house loans.

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Source of this article: Thansettakij: https://bit.ly/3Stur3G