For many small business owners, the economy has been tough. With tightening mortgage regulations, qualifying for a mortgage has been tougher, causing many applicants to ask, “How can I qualify for a mortgage if I’m self employed”.
Here are 5 tips for a smooth mortgage application for a self employed person.
1. Understand the income you make:
Ever heard of the saying, “Give me the bottom line”? The saying has roots in the financial industry. Sure you may have grossed $150,000 last year(Top Line), however, writing off $140,000, leaves you with a Bottom Line of….you guessed it $10,000. So lenders are forced to qualify a borrower making $10,000 per year which won’t buy you much of a home in this day and age.
Gone are the days of writing your income on a loan application with no supporting documentation. Today all qualifying income must be documented.Continue reading