By
eHow Personal Finance Editor
Difficulty: Moderately Easy
Step1
Request a copy of your credit history and score. Check it over carefully to make sure it is accurate. If you find anything on your credit history that is not correct, contact the credit company and get it cleared up before applying for a home mortgage.
Step2
Raise your credit score. Generally a credit score of over 600 makes you a good candidate for a mortgage loan. However, if you are self employed you will have a better chance of qualifying for a mortgage if your credit score is above average. If your credit score is low, take out a small personal loan and pay it off promptly before applying for a mortgage.
Step3
Save a sizable down payment before applying for a mortgage. In general, lenders will require that you submit 20 percent of the cost of your house as a down payment. The larger your down payment, the lower the risk to the lender.
Step4
Look for a No Doc or Stated Income mortgage. This type of mortgage was designed for the self-employed and contractors who have a harder time proving their income. The lender will allow you to state your income without being able to provide all of the necessary documentation. Most lenders offer No Doc mortgages.
Step5
Use a mortgage calculator before applying for a mortgage. A mortgage calculator lets you determine how much of a house you can afford. Enter the amount of the mortgage that you would like and the interest rate that you believe will be offered. Be realistic about your financial situation and do not apply for a mortgage larger than you can afford.
Step6
Be prepared when meeting with a mortgage lender. If you are self-employed, you must bring copies of your tax records for the last 2 years and a year-to-date profit-and-loss statement for your business.
