How to qualify for a mortgage when you are self employed or have a side business?
If you don’t work for someone else.. be careful of what you are trying to deduct on your tax returns. Deductions are great for tax write offs but if you are looking to use that income to qualify to get a mortgage make sure you review with your mortgage consultant before hand to be informed about your options.
The mortgage underwrites must look at the past 2 years of tax returns net after tax deductions for qualifying income.
Almost everyone has a side hustle. It is a great way to make part time income and pursue your passions. If you state that you have a loss then that will be taken into consideration when using that income to qualify for a mortgage.
Tip #1 – Get to know your accountant!
Tip #2 – You need to plan for this purchase even if you are a year or two down the road if you are self employed.
Tip #3 – If you have rental income – make sure you file it properly.
What if you find an error in your tax returns? Make sure your taxes are correct before you make a mortgage application.
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