My wife and I have been self-employed for almost 15 years now. Just like most small business owners, we have done the best that we can to balance the expenses of running a business, but also have enough cash left over to pay our bills. Nobody taught us how to run a small business. We did not join the contracting world because we were passionate about bookkeeping, payroll, and insurance policies. We joined the contracting the world because we are passionate about helping people achieve the goals they have for their home.
Asking The Wrong People:
After several years of grinding hard we finally decided that we were in a position to purchase our first home. Our credit score was solid, our cash flow was good, and we even saved a little bit of money! We walked into our credit union with our heads held high ready to apply for a mortgage. The lender looked at our information and denied us on the spot. We left the credit union feeling very discouraged. We had everything that we thought we needed for an approval. And what it really came down to was the fact that this particular lending institute did not understand how to work with self employed people.
Asking The RIGHT People:
About a week later I was sharing our experience with a friend of ours who is a well-established a real estate investor. He said that we needed to speak with a Mortgage Broker, someone who did not represent one particular bank, but multiple banks. So we did just that. Through a Google search we discovered Petar Bojlevski at Upstate Premiere Mortgage in Baldwinsville. We sat with him in his office for about an hour running through the application and answering his questions. We walked out of his office with a preapproval letter in our hand! Two months later we closed on a house that was significantly nicer than what we thought we could afford!
The moral of the story is, do not take no for an answer. Learn how to network and connect with the people who understand your situation. Trust me, there is someone out there that can help you.