Are you self-employed? Are you self-employed and considering purchasing a home? Do you think it might not be possible for you? Being self-employed does not mean you are unable to qualify to purchase a home. We can assist with getting you all the information needed to get you qualified for a mortgage and answer any questions you might have about the process.
The first step is the same as with any other type of mortgage which is applying for the loan. You may want to shop around and discuss your options with different lenders to make sure you are working with a company that best suits your personal situation. Once you’ve found a lender you want to work with, you’ll want to get all your financial information together to start the process. You’ll have to provide documentation of your income, debts and credit history in order to get approved.
If you have never applied for a loan before, you may not be familiar with the underwriting process. You will need to submit your financial documents to the underwriter so they can begin writing the loan. The underwriter will begin to fully begin getting your mortgage completed if you are approved which can take some time. If you are self-employed, the underwriting process can be complicated when it comes to getting you qualified because lenders only consider taxable income.
The main thing a lender wants to confirm is that you are financially stable enough to pay back the loan as well as that the down payment is coming from a reliable source. You may be asked to provide additional information regarding the source of your down payment in certain situations. You may have to provide other documentation, depending on the underwriter and what they deem is necessary to qualify you as a qualified candidate.
The Approval Process
The approval process will vary from lender to lender so you will need to discuss specific requirements with the lender of your choosing once you’ve been approved by an underwriter. The amount of time you have been self-employed is considered when you are applying but the requirements have loosened so you may be able to get approved without meeting the 24 month requirement. You might be able to qualify with just a single year of tax returns but they have to show at least a year of income.
Call Us Today!
If you are self-employed and considering your options to buy a home, you’ll want to get an expert opinion from a tax expert, possibly an accountant, and a mortgage lender. We would be more than happy to discuss your options and answer any questions you may have, so feel free to give us a call at KC Investor Funding in Kansas and Missouri today!