Buying While Self-Employed

July 17, 2023

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As a self-employed individual you have the same loan options and requirements as a wager earner does. However, you do have the added complexity of providing detailed proof of income.  Here’s what you need to be aware of and prepared for:

✅ Organize your finances and records. You will need to provide details to your mortgage lender. 

📝 Provide comprehensive income documentation. You need to have at least two years of self-employment history to qualify. You have to show that you have regular, conisistent income, but only taxable income is factored into your eligibility. 

💼 Build a strong credit profile. You will be held to the same credit score eligibility as ‘traditional’ borrowers. 

📚 Understand lender income requirements and research tailored mortgage options.

📋 Get pre-approved for a clear budget.  And get this pre-approval before you start looking at homes.  The worst thing you can do is fall in love with properties that you can’t afford. 

📞 Partner with a local, experienced mortgage professional.  Who you work with matters when you are buying a home in a competitive market.  Ask your real estate agent for recommendations on who they trust to get your offer accepted.  

With these valuable insights, you’ll be well-prepared to navigate the home-buying process as a self-employed individual. Embrace the journey, gather your documents, and get ready to call that dream home your own!