Finding a new home can be intimidating for everyone, but it can be increasingly so for homebuyers who are self employed. Common challenges come from proving that you have a steady income, especially when you don't have employment letters or pay stubs on hand. With some careful planning, it can be much easier to navigate an already stressful process and find yourself a new place without breaking too much of a sweat.

ALTERNATIVE EVIDENCE FOR FINANCIAL STABILITY

• A few years of tax returns
• Self prepared profit and loss statement
• A business license
• Audited financial statements
• Signed documentation from a CPA (Chartered Professional Accountant) verifying your business
• Employer's liability insurance
• Signed documentation from clients including date and type of service provided 

FOCUS ON YOUR CREDIT SCORE

A high credit score can demonstrate your ability to pay off debts and be responsible with money. Aim to already have or establish a consistent track record for prospective landlords and lenders. You can keep your credit in check by keeping credit card balances low, paying accounts in time, and avoiding applying for other credit lines while you're applying for a mortgage.

SEPARATE PERSONAL AND BUSINESS EXPENSES

Keeping your accounts organized and separate helps lenders determine your business expenses and income more efficiently. Business expenses that are paid through a business account might not be held against you, since it's an asset for the business. On the flip side, be careful with deductions on business expenses, as this lowers your overall taxable income, which can hurt your chances when applying for a home loan.

Home buying is never easy, but keep these tips in mind when making your next significant life decision!

Planning to buy or sell a home in the near future? From an outside perspective, it may seem relatively simple and while there may be aspects of working alone that individuals find appealing, real estate professionals have years of experience under their belts as well as plenty to offer, from vast networks to tips that are tried and true. Why use the help of a realtor? Find out below:

If you're on the search for a new home, a licensed realtor has the expertise to provide detailed market analysis when analyzing the best choices to suit your needs. From having worked in the industry, they can explain to you the current and projected market conditions, which may help you optimize the time of your purchase or associated sale. Assuming that you screen carefully for a diligent realtor, they can focus on your specific needs, research and arrange for you to see prospective homes, and inquire about important details that might otherwise go unaddressed. Once you find the perfect place, they are there to represent you in the negotiation process, assist with home inspections and support you through the entire closing process until you take possession.

Alternatively, if you're looking to sell your home, a licensed realtor is the best person to turn to when working out comparables in the process of arriving at the best asking price. Especially given the importance of marketing, they will have trusted connections who can help showcase your home in the best possible manner, from drone photography to virtual staging and video tours. Their expansive network of colleagues and clients will quickly help get the word out and your listing would be shared with a massive number of potential buyers. Similarly, realtors will help you through the entire negotation process and work by your side to ensure a smoothing closing. 

Working with a realtor takes away from the burden of having to either be already proficient or willing to spend a large amount of time becoming familiar with the relevant terminology and paperwork. Pricing your home and closing a deal can be intimidating on your own, and effective marketing will usuallyy require a significant level of dedication. With plenty of work on everybody's plate, you might want to consider whether one of these options would be more beneficial to you in the long run.

With more and more of us figuring out physical distancing requirements and starting to adjust to the new normal, we might be getting back to the to-do list that was temporarily stowed away. If you're in the market for a new home, chances are you still want to see the property in person, and that's where open houses come in! A majority of homes will still be inhabited by the sellers, so what does open house etiquette look like?

CHOOSE YOUR OUTFIT ACCORDINGLY

While it's not necessary to go all out with a professional suit, how you present yourself in this setting is just as important as any other event. You may gain admittance to the home if you're dressed in sweatpants and flip flops, but you risk not being taken as seriously if you're actually invested in buying. Beyond that, proper attire shows both the sellers and real estate professionals involved that you're respectful and mindful of their living and working space.

BUYERS WITH AND WITHOUT REPRESENTATION

If you're already working with an agent, feel free to inform the agent holding the open house with something as simple as a business card. Realtors may forget to ask about this information in advance, but won't try to solicit you once this information is brought to attention. If you are without agent representation, open houses are a great way to find an agent since you get to witness them in live action and engage in face-to-face conversation. Feel free to ask for their contact information and set up a followup interview.

PRETEND ITS A GALLERY

Although homes are much less intimidating than display cases under harsh light in a museum, try to keep your hands and curiosity stowed away, especially if you have children in tow. Ask the agent whether shoes are preferred on or off, and avoid opening closed doors, drawers, and cabinets, especially if the home has yet to be vacated. Treat the home as respectfully as you'd like others to treat it, including asking about whether pictures are allowed.

All the best and happy browsing!