For self-employed borrowers, the most challenging part of the mortgage application process oftentimes has to do with gathering proof of income and employment verification.
The mortgage application process is the same for every borrower: lenders will look at your credit history, the amount of capital you have, the type of home you plan to purchase and your capacity to repay the loan, among other factors. But when you're self-employed, lenders may ask for different or additional documentation to determine the amount you're qualified to borrow. Here's an overview of what you'll need to provide if you're self-employed and applying for a mortgage.
Proof of income
Depending on the nature of your self-employment, you may have income from freelance work, a side job/gig work, contracting, a business you own and more. When you apply for a mortgage, lenders will consider your total taxable income from all these sources to determine how much you're qualified to borrow.
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