buying a home: Do Not Shoot Yourself in the Foot if You Are a Self-employed Buyer
- 08/02/16 06:36 AM
Your income (among other things, such as your credit score and debts) is very important when it comes to qualifying for a mortgage. When you are self-employed, you make money, but you also spend money in your business, so your real income depends on how much money you have left after your business expenses. So, if you make $100,000 per year, but you have $40,000 in business expenses, then your net income is $60,000 per year. This is the number that a lender will typically take into account when qualifying you for a mortgage. They will ask for your two … (24 comments)
Your income (among other things, such as your credit score and debts) is very important when it comes to qualifying for a mortgage. When you are self-employed, you make money, but you also spend money in your business, so your real income depends on how much money you have left after your business expenses. So, if you make $100,000 per year, but you have $40,000 in business expenses, then your net income is $60,000 per year. This is the number that a lender will typically take into account when qualifying you for a mortgage. They will ask for your two … (24 comments)
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