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Thinking about buying a home but puzzled by how mortgages work for the self-employed? ๐Ÿค”

Thinking about buying a home but puzzled by how mortgages work for the self-employed? Brittney with Dream Home Lending is here to give you a simple breakdown to clear things up.

๐Ÿ“‰ ๐–๐ก๐š๐ญ ๐‹๐ž๐ง๐๐ž๐ซ๐ฌ ๐‹๐จ๐จ๐ค ๐€๐ญ

If youโ€™re self-employed and file a Schedule C during tax time, lenders donโ€™t just look at your gross income (the total money youโ€™ve made). Instead, they focus on whatโ€™s left after your expenses, which is shown on ๐‹๐ข๐ง๐ž ๐Ÿ‘๐Ÿ ๐จ๐Ÿ ๐ฒ๐จ๐ฎ๐ซ ๐’๐œ๐ก๐ž๐๐ฎ๐ฅ๐ž ๐‚.

๐Ÿ‘‰ ๐–๐ก๐ฒ ๐‹๐ข๐ง๐ž ๐Ÿ‘๐Ÿ ๐Œ๐š๐ญ๐ญ๐ž๐ซ๐ฌ

This line shows your net profit, and itโ€™s the number that mortgage underwriters use to figure out your income when you apply for a home loan. Itโ€™s important because it can be much lower than your total sales, due to your business deductions.

๐Ÿ  ๐๐ฎ๐ข๐œ๐ค ๐“๐ข๐ฉ

Before you apply for a mortgage, check Line 31 to get an idea of what lenders will consider as your income. This could be different from what you might expect based on your total sales!

Connect with @dream_home_lending and @loansbybrittney for any of your mortgage questions.

๐Ÿ’ฌ Got questions or need more tips on applying for a home loan as a self-employed individual? Comment below or send us a message!

Helping YOU find your way home. ๐ƒ๐ž๐ž ๐Œ๐š๐ซ๐ญ๐ข๐ง ๐‘๐ž๐š๐ฅ๐ญ๐ฒ ๐†๐ซ๐จ๐ฎ๐ฉ 903-991-HOMEโ€ข Remax, Alight

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