As many have already stated speaking with a lender is the first step to see what you can afford. We have many programs that would fit a self-employed borrower here at Annie Mac Home Mortgage. If you would like more information please feel free to reach out to me at 856-437-8029 or firstname.lastname@example.org
Mr Mason Clark
Mason Clark Loan Firm Plc.
Sr. Mortgage Banker
NMLS # 659743
you start the home buying process is to contact a lender. The best way to find a lender to
address your situation is to start with referrals from friends and family or the bank you currently hold accounts. Lenders vary widely so you need to ask the right questions. It would be my pleasure
to share with you the lenders I work with that can address your concerns.
Please contact me on my cell at 267-615-8741.
I look forward to speaking with you.
Speaking with a Mortgage Lender is the way to go. We are Berkshire Hathaway HomeServices, Fox and Roach, Realtor and Trident Group and we would gladly assist you in achieving your goals.
You can contact me at 302-838-3909 or 215-287-5590.
Philip J. Cunningham Sr.
Market Force Realty
801 W. Street Rd
Feasterville, PA 19153
Sanjeev Ahuja, NMLS #148731
Home Funding LLC
110 Jericho Turnpike Ste 214
Floral Park, NY 11001
Direct Phone 917-517-2552
NYS Registered Mortgage Broker, Dept of Financial Services, Loans arranged through third parties (NMLS # 885573)
Realty Mark Associates
Just like for salaried or hourly workers, mortgage approval is generally based off of 3 things - income, credit, and assets (down payment).
The different part with self employed borrowers is the income part. With respect to income, lenders want to see that the income is stable, verifiable, and likely to continue. Now, for salaried and hourly workers, they generally receive about the same pay check week in and week out, so this is considered stable and verifiable. And a quick call to their employer for verification can tell us whether it is likely to continue.
For self employed borrowers its a little trickier. You guys generally don't get a "steady" paycheck. So for this reason, lenders require that you need to be in business a minimum of 2 years in order to show stability and likeliness to continue. And as far as verification of income, lenders require your most recent 2 years of tax returns to document income. Since a lot of your income could be eaten up by business expenses - such as office rent, a work vehicle, travel and meals, etc - the income that lenders go by is basically your NET income figure, after business deductions have been taken.
If your income INCREASES from one year to the next, lenders will generally allow you to average the two years' income. If it is DECREASING, then they will go by the lower year.
This can create problems some times, because your CPA is going to encourage you to take advantage of all your available deductions so your tax liability is less. However, when you go to apply for a mortgage this makes your income look lower.
I hope this helps explain things a bit. To answer your question directly, the way you go about getting a mortgage as a self employed borrower is to prove you've been in business at least 2 years and provide tax returns to document your income. From there, a lender can tell you how much you are able to qualify for.
Please give me a call if I can assist you with getting pre-approved. It would be my pleasure to help you.
Tony Grech | Mortgage Loan Originator | NMLS 977416
PMAC Lending Services, Inc.
Direct (248) 728-0078 | Fax (248) 595-7130 | Cell (313) 622-7383