Mortgages For Contractors- Do Not Believe On Myths
 

Working as an independent contractor gives a sense of pleasure to many people, as they do not have to follow any strict office norms, nor they have to follow the same routine, day in and day out. However, at times, working as a contractor might become a bit tricky. One such situation is, when you are in need of a loan to buy any asset or to support a necessity. Independent contractors or freelance workers often do not get loan from their employers and have to rely on contractor mortgages to earn money. While some manage to get the loan at ease, there are others, who often get confused with the myths. So, before you take a loan, check the myths to be avoided safely.

 

Proving your working experience

 

 Many of you may have heard that people who can show their job contracts of at least past three years can only get these types of loans while others may have heard that lenders check six month's contract before offering a loan. Well, do not get confused by any such myths. It is true that lenders verify the documents related to job contract before offering the loan, as they want some assurance of the borrower's ability to repay the money. However, that does not mean, you will have to provide all job contracts of the past six months to three years.

 

Huge deposit is necessary

 

There are people, who often hesitate to take mortgages for contractors and opt for the high interest loans. It is mostly because they believe in the myth saying that you lenders require a deposit of at least 50% of the money they offer as loan. Do not believe in such false stories. Go to the financial institution where you want to apply for the mortgage and check their policies. It is good to have a deposit of 10 to 15 percent of the money that you want to be raised, as this will reduce your rate of interest.

 

High interest for high risk borrower

 

As you do not have a permanent employment contract, lenders will consider you a high risk borrower! This is also another myth. If you have a good credit score, lenders will never consider you high risk borrower and will offer you a good interest rate.

 

Nowadays, there are several financial institutions, which offer these types of loans. Check out for them wisely and shop for the best mortgage.