If you’re self employed, you know that getting approved for a mortgage can be more challenging when it comes to documenting your income. However, rest assured that business owners in Dallas Texas are able qualify to buy homes and refinance homes just like regularly employed wage earners.
It’s important to work with an experienced loan officer that understands how to properly interpret and present your income documentation to the underwriter. When the income documents are not properly interpreted and presented, problems can arise. Email questions to firstname.lastname@example.org or Click Here to have an experienced loan officer call you today about getting qualified for a low rate.
There are many myths floating around when it comes to approving business owners mortgages. For example, Self Employed Borrowers DO NOT Require More Downpayment.
Things to Remember To Qualify for Most Loan Programs (There are a few exceptions, so call if you don’t fit all of the criteria)
- Two Years of Self Employment History is Required
- Income is Determined Based on the Average of Taxable Income Filed over the last Two Tax Periods
- Statement from CPA May Be Required to Verify Business
- Year To Date Profit and Loss Statement May Be Required
- If using funds from business account for your closing, be prepared to provide evidence that using the funds will not impact the business ability to maintain earning income at current level – CPA Letter of Explanation May Be Required
- If you’re buying a new house, get Pre-Approved early and provide ALL documentation before writing a contract!
Be Prepared with the Following Documentation Up Front to Properly Determine Income Before Proceeding to Avoid Surprises
- Two Years of Filed/Signed Personal Tax Returns including All Schedules
- Two Years of Any 1099 or w2 Statements for Salaries Received – If Applicable
- CPA Letter Verifying Self Employed Business Owner for Over 2 Years
- If filed previously as a Corporation or Partnership, then will also need Two Years of Filed/Signed Business Returns AND K1 Statements – All Schedules
If you’re a self employed business owner in the Dallas Fort Worth area of Texas (or anywhere in Texas or all 50 States), the most important thing to remember is to work with someone with experience in helping self employed borrowers. Contact Me Today with any Questions.