Blogging is one of life’s many joys, though it doesn’t pay quite as well as most would think. While I do make a little money blogging I am fortunate in that I have a full time day job that pays my bills. That isn’t to say there aren’t many people out there who are working as bloggers full time, in fact I know quite a few. They all have varying levels of success, and some are better at monetizing their sites over others, but they all have the same basic complaint, the lack of a steady income! By steady income I mean a paycheck that you get once a week, every other week, or even once a month. A blogger could have a great month and rack up $10,000 in income, but then make next to nothing the next month. When your income suffers these wild swings it can be hard to budget, and more importantly, to take out a mortgage!
I sold my house last year to some real estate investors that offered cold hard cash. But before the investors came along we had a nice married couple with two children who had put down a higher offer on our home. He was a wedding photographer, and she was a freelance writer for online publications. Both seem like fun creative jobs, but as I quickly learned, they have income that is very unpredictable. After keeping us on hold for a couple months we were told that their mortgage company wouldn’t approve the loan amount due to their volatile salaries. So we went with the next offer, which ended up much lower, lesson learned!
First and foremost, if you are a blogger then odds are you don’t have very steady income. That being said, it is still very possible that you can take out a mortgage you just need to be smart about it. First, make sure you save up an ample amount of money for a down payment. Saving at least 20% for a down payment will allow you to get a conventional loan, which has a much greater chance of getting done. If you can put down even more than 20% then your loan will look even more favorable to the lender. Next, see what you can do to steady your income. If you have regular advertisers that work with your site, see if they can pay you in even amounts each month, rather than a lump sum payment one month and nothing the next three months. Underwriters will view this as steady income. Maintain a good credit score! It’s really as simple as that, having good credit is the gateway to obtaining any type of loan. The higher your credit score the more favorable you will look to the lender. Last but certainly not least, you need to determine which home loan is the right one for you. Doing a simple home loan comparison from the beginning will go a long way when you are trying to get approved. A loan with shorter terms may yield a lower interest rate, but it also comes with a higher payment. A higher payment could be viewed as riskier by the lender. Meaning, you could get approved for a certain loan amount, but if the payback period looks too risky then they might decide to reject your loan. As you can see there is a lot to consider when taking out a mortgage, especially for those of you with less than steady paychecks, so do your homework before applying.