Do you own a successful business? Being self-employed has many perks and creates a world of personal growth opportunities. We recognize, however, that the mortgage experience can prove to be a bit more challenging. Axia is here to best prepare you and assist with this process.
WHAT MAKES THE PROCESS DIFFERENT?
A traditional borrower can have income verified with a paystub(s), W-2(s) and a verification of employment. A self-employed borrower will require tax returns and all applicable schedules along with a year-to-date (YTD) profit and loss statement.
A traditional borrower’s income is usually based on their current pay. A self-employed borrower’s income is determined by an average of their earnings and must be supported by the YTD profit and loss statement.
For a traditional borrower, a tax return will portray income history and reliability. For self-employed borrowers, traditional tax returns are a bit more complex. They don’t always present sufficient documentation or prove stable income. The lender will need to review two years’ worth of tax records.
HOW TO MAKE THIS PROCESS SMOOTHER
Come prepared with the following information:
- The most recent two years of filed tax returns along with all schedules.
- If you have a partnership or a corporation, be prepared to supply those tax returns as well.
- A year to date profit and loss statement.
- Any significant increase or decrease in income must be addressed and possible additional information may be required for explanation purposes.
Axia’s mortgage professionals are well versed with qualification requirements for self-employed borrowers. The support staff, processors and underwriters, are available and willing to review a loan scenario, and provide personal advice catering to almost any unique situation.