How can I improve my chance for qualifying for a mortgage if I’m self employed?
It definitely helps when you have some cash on hand. Due to the sometimes inconsistent income of self-employed borrowers, some lenders are uncertain about their ability to pay the mortgage consistently. Demonstrating that you can make the mortgage payments without consistent income definitely helps!
What are the most common reasons Self-Employed borrowers get denied for a mortgage?
One of the primary reasons self-employed borrowers gets denied for a mortgage is that they simply haven’t been self-employed for long enough. Most lenders require two years of self-employment history. The second most common obstacle may be the self-employed borrower can’t show enough income to qualify.
What documents will be required to qualify for a mortgage if I am self employed?
Beyond having good credit and a low debt to income ratio (DTI), you’ll need to provide bank statements and any other financial account statements you may have, and proof of any other debts or assets you own. You’ll also need to provide personal and business income tax returns from the past 2 years and a quarterly profit and loss statement.