A self-employed worker is especially sensitive to financial matters. This affirmation comes from the fact that there is no distinction between personal assets and those dedicated to the professional or commercial activity that they carry out. Everything is intermingled, including mortgage operations. Whether it is for a residence of their own or a property intended for the purpose of their work, a self-employed person has greater difficulty in obtaining bank financing.
The characteristic problems of an independent demand that the mortgage intermediation service is susceptible to improvement, closer to a comprehensive vision of finance and offering specific solutions that satisfy all kinds of problems related to this area. This aspect has not gone unnoticed by certain professionals and is increasingly aware of the advantages that a financial specialist can provide in the service of a self-employed worker.
Clarity and order in the finances of a self-employed worker
What experience do we have with the client? This is one of the first questions that every banking entity is asked when studying a mortgage operation. It is this aspect, good habits of action and an order in finance make a difference. So, we can be sure that the operation begins long before the request for a mortgage.
The client of a banking entity maintains with it certain asset and liability positions, which constitute the banking products and services themselves. A certain person subjects to a business activity on his own account, that is, a self-employed worker, requires certain banking products. The question is what, to what extent, at what cost and how you have distributed among the different entities with which you work.
A good mortgage intermediation service takes into account these issues, advises the client to configure in an appropriate way its banking map and helps its client to design a comprehensive financial plan. In this sense, when the economy proper of the business activity works as it should and the bank has certain knowledge that its client is making intelligent financial decisions. It will be much easier to grant a Self Employed Mortgage; even in better conditions.
In short, the first requirement that a self-employed worker must meet before initiating the mortgage application process is to become aware of the initial situation and how to improve it. In this regard, the intermediation service has much to contribute, it is an important part, which will define the design and execution of the negotiating strategy.
All this with the addition that the financial situation will improve since you will have full advice. The income, the delinquency, developing a budget, proper distribution of banking products and services is not only useful in order to improve the negotiating position with the bank which will contribute to the better functioning of the business.
Documentation in the application for a mortgage
In addition to the internal information which the entity itself has with the client, the bank analyzes the solvency of the same based on a series of documentation of various kinds. This supposes the preparation of an initial dossier of banking negotiation.
The elaboration of a complete, orderly and well-configured dossier will show an image of professionalism and seriousness when requesting financing. In addition, the information provided later must be argued, so this document represents one of the central axes on which the negotiation will be structured. Its importance is key.
The knowledge of what to contribute, how to present the information and explain the why of each piece of information represents a part of the work that a professional of the banking intermediation must know exactly.
A general summary of the relevant documentation that the bank dossier should contain would be:
- National identity document.
- Executive Summary.
- Summary of the history of professional or business activity.
- Registration in the Tax on Economic Activities.
- VAT settlements and other fiscal aspects.
- Receipts of the quotas in the General Social Security Scheme.
- Work-life report.
- Accounting documentation clarified.
- Information on income, expenses, budgets, and other financial aspects.
- Commercial reports
- Bank references.
- Judicial Incidents.
- Information regarding the guarantees and the ability to return.
- Formal request and financial structure of the operation.
- Demonstration of the ability to return and good habits in the management of finances.
As is to be expected, the preparation of this file is laborious and requires specialization in the financial field. It is helpful to have a mortgage intermediation professional to deal with these issues.
The information provided to the entity must be clear and precise. Follow a coherent line of argument that leads to a negotiating strategy.
Accompaniment during the process
The personal problems faced by self-employed workers are multiple:
- Less social protection (unemployment, pensions, vacations, etc.).
- Longer working hours that prevent family conciliation.
- Variable income.
- Loneliness in the face of difficulties.
- Risks on your personal assets.
Among others, this type of difficulty directly affects the quality of life of an independent worker. Society, increasingly, is recognizing the importance that this group has for the development of the country’s economy. However, there are still many areas of development to facilitate the work of this type of professionals.
Given such a situation, it is not surprising that a self-employed person feels stress. You must deal with all kinds of situations and applying for a mortgage represents a long and complex process that increases anxiety.
For this reason, it is increasingly necessary to have external support. An anchoring point that accompanies you throughout the mortgage process and even extends to the financial sphere as a whole.
A trained mortgage broker should be aware of this type of tension, try to palliate them by showing up as a traveling companion. Generating the necessary trust and solving the inconveniences and emotional issues that lead to bad decisions. A good intermediation service is based on accompanying the applicant at all times, even after the operation is finished.