A Mortgage Loan For The Self Employed
If you are self employed then you probably know how to maximize your
deductions to help keep your taxes very low. It can take a lot of work to run a
business, but you have one big advantage that many employees envy: no boss
breathing down your neck to tell you how to do this or that.
Of course, the one thing you don't have is easy documentation of your income which can make getting a mortgage loan a bit more of a challenge for you.
How about you? Are you in the market for a mortgage and are self employed? If
so, read on and we'll explore what you need to do to get into the home of your
dreams.
When applying for a mortgage loan lenders want to see the last two or three
pay stubs and your W2 forms dating back at least two years time. This could be
impossible if you are self employed: chances are you take your monies as a
disbursement as you are not actually paid.
Should this be the case for you, then you must realize one thing: you'll have
to find a mortgage broker who isn't bothered by the fact that you are self
employed. Many lenders are okay with less documentation, but they will request
some information which could include:
Personal checking and savings account statements going back about three
months.
Copies of your federal and state income tax filings for the past two
years.
A copy of your company's articles of incorporation as well as business
checking account information.
Lenders are in the business of lending money and making money on their loans.
Therefore, every applicant is treated as a potential customer and every effort
is made to extend a loan that is right for each one.
Please know that just like other applicants, your lender will pull your three
credit reports and credit scores in a bid to determine your creditworthiness.
You could be asked to put more money down especially if your income isn't
stable: lenders will work with you if your income fluctuates, but they may want
to reduce their risk as you put more money down toward your home purchase.
Again, lenders are in the business to find a way to make a loan a reality for
you. Their motivation is a commission while yours is to close on a home.
Together, these two forces can bring about the successful conclusion of your
mortgage application.
deductions to help keep your taxes very low. It can take a lot of work to run a
business, but you have one big advantage that many employees envy: no boss
breathing down your neck to tell you how to do this or that.
Of course, the one thing you don't have is easy documentation of your income which can make getting a mortgage loan a bit more of a challenge for you.
How about you? Are you in the market for a mortgage and are self employed? If
so, read on and we'll explore what you need to do to get into the home of your
dreams.
When applying for a mortgage loan lenders want to see the last two or three
pay stubs and your W2 forms dating back at least two years time. This could be
impossible if you are self employed: chances are you take your monies as a
disbursement as you are not actually paid.
Should this be the case for you, then you must realize one thing: you'll have
to find a mortgage broker who isn't bothered by the fact that you are self
employed. Many lenders are okay with less documentation, but they will request
some information which could include:
Personal checking and savings account statements going back about three
months.
Copies of your federal and state income tax filings for the past two
years.
A copy of your company's articles of incorporation as well as business
checking account information.
Lenders are in the business of lending money and making money on their loans.
Therefore, every applicant is treated as a potential customer and every effort
is made to extend a loan that is right for each one.
Please know that just like other applicants, your lender will pull your three
credit reports and credit scores in a bid to determine your creditworthiness.
You could be asked to put more money down especially if your income isn't
stable: lenders will work with you if your income fluctuates, but they may want
to reduce their risk as you put more money down toward your home purchase.
Again, lenders are in the business to find a way to make a loan a reality for
you. Their motivation is a commission while yours is to close on a home.
Together, these two forces can bring about the successful conclusion of your
mortgage application.