Being a self-entrepreneur and wanting a home loan for your principal home may seem complicated at first. However, if a self-contractor provides the necessary documents to the lending institution, there will be no more difficulties.
Is it possible to borrow when one is self-entrepreneur?
The simplest case
You have a seniority greater than three years, in which case there are no major concerns. The bank will look at:
- The financial health of your business with an interest in the quality of your customers
- Your annual remuneration paid during the last three years will be taken into account in the study
The most delicate case
If you have less than three years seniority, the bank will look at:
- Your business sector and the turnover achieved so far
- The external guarantees that you can present: significant savings, contribution in the important project, property ownership, etc.
What documents does the auto-entrepreneur need to provide?
To study the loan application of a self-entrepreneur, the bank will ask you:
- The last two income tax notices
- The last three personal and professional bank statements
- Proof of identity and domicile
- A compromise of sale
What are the guarantees that the auto-entrepreneur must provide
A bank has every interest in avoiding a non-payment of the remaining monthly payments, that is why it can ask you:
- A mortgage loan insurance: it is mandatory, in case of loss of autonomy or death. The best way to get one at an attractive price is to go to a borrower insurance comparator such as Best Lending
- A co-borrower on a permanent contract
- Mortgage of real estate
- A significant personal contribution
Our advice to have more chances to get your loan
the activity of your company must be interesting
Not all auto-entrepreneurs are equal, their business often makes the difference. Banks favor certain trades that have a regular high-income business. If your professional activity is little known or uncertain, you should reassure your banker by preparing your arguments.
Compile a complete file
If your file is complete, your chances of getting a loan will be greater. As a self-employed entrepreneur, this shows that you are organized and will allow the bank to obtain a set of elements to make its decision.
The documents to provide and the guarantees are important to create a mortgage file as a self-entrepreneur, they will allow you to show your financial strength in case of problems. The bank must be able to be convinced that your business is profitable and that the repayment of your mortgage can be done without problem.
Call on Cash Lending, mortgage broker
Cash Lending will take care of presenting your file to its partner banks. Our role is to support a complex set of tasks to build your loan file and search for lenders, which will save you time.