Post # 1
My husband and I opened an Computer Repair and IT Solutions business this year and we’re itching to start looking for a mortgage lender. The trouble is, we have no idea what to expect at tax time. We make enough to survive and have a little in savings then the rest is invested right back into the business. I’m so nervous that we’ll get turned down for any kind of loan because our income is “self employed” income and not a weekly paystub from a reliable corporation. Usually lenders want to see a few years of taxes to understand how well the business is doing before they hand out a mortgage.
I know it would be best to sit down with a lender and just see what they want from us, but I thought I’d reach out to see if any of you bees have experience trying to get approved for a mortgage with a “self employed” status. Any insight or experience would be super helpful!
Post # 3
@Mrs.Metalm: Here, there are brokers who deal with self-employed people. They recommend coming to them well in advance (for free), because their are things that can be done at tax time that will help with a mortgage in the future.
I don’t know if it works like that there to the same extent, but it’s worth looking into!
Post # 4
You have to submit the company’s tax report which lists income and taxes, along with your personal bank account statements. Depending on how long you’ve run it they can either use an average income or wait until it’s been established longer.
Post # 5
I’m self employed and from what I’ve researched in general it they want 2-3 years worth of tax returns. I decided it was easier to just save up and buy a small fixer upper instead cash.
Post # 6
I was also self employed until recently. I agree with the PP, they wanted 3 years of tax returns. My accountant laughed in my face when I told him we wanted to buy a house because it was virtually impossible when you are both self employed. I was the main reason we decided to work for a corporation. I wish you luck, it’s an uphill battle but I’m sure you can figure something out!