Does running a business from home affect mortgage?

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asked Jun 11 in Real Estate - Renting by webworld (850 points)
Does running a business from home affect mortgage?

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answered Jun 14 by Higgonbottom (6,070 points)
Running a business from home does not affect your mortgage unless you have customers and clients showing up at your home.

If you're running an online business from home and have no customers or clients coming by then your mortgage should not be effected.

If you work from home for an employer then your standard homeowners insurance policy is usually enough.

However if you work from home for yourself then you may need to add a business insurance policy to your homeowners insurance policy.

However some people just leave their insurance as is and work from home without any issues.

You don't need to tell your insurance if you work from home.

You don't need to tell your home insurance company if you work from home.

However telling the home owners insurance you work from home if you have a separate office can help insure anything that could be lost or damaged in your home office.

You may need to update your homeowners insurance policy though if you tell your home insurance you work from home but most people don't tell their home insurance company about working from home.

You can work from home on your mortgage.

When you buy a home and are paying a mortgage you can work from home or do anything you want in the home without needing to let the lender know about it.

Many people work from home with their mortgage and don't tell their mortgage company or bank about it.

As long as you're making the payments the banks really don't care what you're doing out of your home as long as it's legal.

Mortgage lenders verify employment by contacting employers directly and requesting income information and related documentation.

Most lenders only require verbal confirmation, but some will seek email or fax verification.

You can even get approved for a mortgage even if you work from home either for yourself or working from home remotely for an employer.

To qualify for a mortgage when buying a home in a different state, all the mortgage underwriter needs is a letter by the employer stating the worker is a remote worker.

The letter needs to state that the employee will remain a remote wage earner for the next three years.

Generally speaking, borrowers who want to use income from a second job to qualify for a mortgage loan in California must have a two-year work history with both jobs.

In other words, they must be able to demonstrate the ability to manage both jobs, simultaneously, for at least 24 months.

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