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How to get a mortgage if self employed

how to get a mortgage if self employed

Here we are with part two of our blog series for those of you who want to get a mortgage and are self-employed.

I’ll repeat what I said yesterday: If you work in a typical job for a company that provides you a steady income, you’re all set. When getting a mortgage. just show your pay stubs and your W-2s and you’ll be good to go. I’m simplifying things (there could be exceptions, of course), but when you work for others, you shouldn’t really have a problem.

Things get a little different when you’re self-employed. Verifying your income requires us to ask for several tax documents and other official forms that prove you’re still actively employed. Like I said above, when you work for a company, it’s very easy for us to verify your income. When you’re self-employed, there are a few extra things you’ll have to show us to make sure we know the mortgage is a legitimate and follows all underwriting guidelines. The full list is below, but it includes such items as tax forms, bond insurance, business

licenses, etc.

Knowing these documents will be required ahead of time will help you prepare for your mortgage and make thing MUCH faster. Trust me on that. Of course, your Home Loan Experts will help you every step of the way and set expectations up front on what you’ll need to qualify (particular to your loan and situation), but knowing as much as possible going into the process will help speed things tremendously.

Here’s the list of the things you may need to show us to verify your income when you’re self-employed:

Tax Forms a Mortgage Lender May Require You to Present to Prove Self-Employment

Schedule C

  • Used to document profit or loss from a business
  • Typically filed when your business is a sole proprietorship

Schedule E

  • Used for rental real estate, royalties, partnerships, S corps, estates, trusts and REMICs (Real Estate Mortgage Investment Conduit)

Form 1120S


Profit and loss statement

Additional Documents that May be Requested by the Lender

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