How does this all affect you? Since your loan will spend majority of its lifetime floating in secondary market, they institutions involved have setup strict guidelines and requirements that determine what type of information is needed from you before they can work with your loan. All of guidelines are based to some extent on systems set up by Fannie Mae and Freddie Mac.

As each lender determines type of risk they can absorb in marketing they may work strictly within guidelines of Fannie Mae and Freddie Mac or they may take a more flexible approach to approving their loans. The guidelines of these Mortgage giants are constantly changing, therefore, it is to your advantage to seek out a reputable company and Mortgage Broker that will fully comprehend them and know how they apply to your particular mortgage file.

Even better, get to know players and rules on your own. Never be at mercy of a banker or Mortgage Broker again. For information visit home pages of following organizations:

Fannie Mae – http://www.fanniemae.com Freddie Mac – http://www.freddiemac.com Ginnie Mae – http://www.ginniemae.gov

The situation is even worse for newly self-employed, as they may not yet have been trading long enough to have had three years' worth of accounts prepared.

This is where mortgage lenders who specialise in self-certification mortgages and self-employed mortgages come into their own. These types of lenders appreciate different and complex working patterns of self-employed, contract workers, and people whose jobs are seasonal. They are prepared to look at each case individually and assess each mortgage application on its own merits, rather than just applying a series of one-size-fits-all income tests. In many cases, self-certification means that you do not need to supply any proof of income - you just declare what your income is without having to provide any supporting documentation.

In addition, specialist self-employed and self-certification lenders are more likely to offer flexible mortgage products that allow overpayments and underpayments. This is ideal for people whose income can fluctuate throughout year, as it means you can overpay when times are good and underpay if you're business is going through a quiet period.

If you want more information on self-certification mortgages for self-employed people, please visit Clean Slate Mortgages.

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Copyright 2004 David Miles. You are welcome to reproduce this article on your website, so long as it is published "as is" (unedited) and with author's bio paragraph (resource box) and copyright information included. In addition, all links to external websites must be left in place.