Real Estate Tip if you are self employed

There's no question that it could be more difficult for you to get a mortgage loan if you are a free lance viola player than if you are a government accountant. Traditionally, lenders have been more cautious when evaluating loan applications of buyers who are self-employed than people who work for a regular salary.

However, if you are self-employed, there is no reason for you to shy away from applying for a home mortgage loan, especially if your earnings have been in the same field for at least two years. It is a good idea to meet with one or more loan officers before you begin your search. They will probably want to analyze your tax returns for the past 2 or 3 years, keeping in mind that many self employed people can look impoverished on paper, since you can write off some expenses that salaried individuals can not. Try to get pre-approval from the lender, and ask for a letter stating that you have pre-qualified for a loan which your real estate agent can attach to any offer you submit on a home. This will make you more attractive to the sellers.

Sellers want communication

Sellers want communication. Most agents think the only thing homeowners want when they list with an agent is to sell their house. Of course this is important, but from the time they list with you to the time it sells, the No. 1 thing they want is communication. A frequent complaint about agents is that they list homes and are never heard from again. So keep in touch with the seller through various means, such as phone calls, e-mails, notes, and face-to-face meetings.

Positive News is good.

The existing-home sales news was good, with sales up a strong 10 percent. That’s the second straight increase since the big, expected drop in July, right after the home buyer tax credit ended.

Of course, because of that big July drop, the market is digging itself out of a pretty big hole, so the two consecutive gains represent just the start of a long-term rebuilding. But the figures are encouraging, because they demonstrate that the market is capable of moving ahead without the tax credit acting as a stimulus.

Looking ahead, it’s possible inventories will ease as we head into winter; inventories tend to drop in the winter months, as would-be sellers hold off until the spring to put their homes up for sale and owners who are selling take their homes off the market until after the holiday season.

So, at least in the near-term, we could see some improved inventory, which in turn could help prices, if trends proceed as they have in the past.