Getting A Mortgage While Self-Employed

Your Tax Write-Offs Could Impact Your Borrower Profile

You know that being self-employed sets you apart from the majority of the population. Certainly, you get the benefit of a flexible schedule and being in complete control of where you take your business. On the other hand, you are oftentimes in an unusual financial situation. This becomes especially clear when you apply for a mortgage.

Unfortunately, many mortgage professionals do not take tax write-offs into account when considering self-employed people for a mortgage. This means that the business expenses, interest on business loans, and retirement savings that the government allows them to write off on their taxes become a problem. Because those expenses are written out of their taxable income, mortgage lenders who look exclusively at tax returns for proof of income will see a number that does not accurately reflect that person’s actual take-home income.

This becomes problematic because lenders might limit the amount of the loan they allow self-employed people to take out based on this reduced picture of their income, or deny them for the loan altogether.

If you are self-employed and in need of a mortgage, let your mortgage professional know about your tax write-offs and dialogue about ways to get a more accurate idea of your income. Also, consider writing off fewer expenses to help boost your borrower profile.

Are you working with mortgage professionals who will take the time to understand your unique situation and work with you to get the home loan you need? To work with this kind of caring team, contact the home loan experts at Avis Lending. With locations in Irvine, California and Lahaina, Hawaii, we are here to meet all of your West Coast mortgage needs. Do not wait to get the loan you deserve; call us today!


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