While it can be more difficult to obtain a mortgage if you are self-employed it is not impossible. The most important part of the process will be verifying your income as you will not have the paystubs like you would from a typical job. Therefore several tax documents and other forms will be required to prove your eligibility.
If you are self-employed and are applying for a mortgage you will be requested to provide a great deal of documents which can sometimes seem a little extreme, but rules and regulations must be followed. If you prepare ahead of time by gathering your documentation this will make the process much faster.
You may need to provide: Schedule C, Schedule E, Form 1120S, K1, Profit and Loss Statement, Business License, Membership of Professional Organization, DBA, Signed CPA Letter, Signed EA Letter, and/or Signed Tax Preparer Letter.
While this is understandably a long list, these documents may vary depending on your type of self-employment. At 1st Advantage Mortgage we work hard for our clients so that you can meet your full financial potential. If you or anyone you know is self-employed and has any questions about financing their home don’t hesitate to ask.