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

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.

📉 𝐖𝐡𝐚𝐭 𝐋𝐞𝐧𝐝𝐞𝐫𝐬 𝐋𝐨𝐨𝐤 𝐀𝐭

If you’re self-employed and file a Schedule C during tax time, lenders don’t just look at your gross income (the total money you’ve made). Instead, they focus on what’s left after your expenses, which is shown on 𝐋𝐢𝐧𝐞 𝟑𝟏 𝐨𝐟 𝐲𝐨𝐮𝐫 𝐒𝐜𝐡𝐞𝐝𝐮𝐥𝐞 𝐂.

 

👉 𝐖𝐡𝐲 𝐋𝐢𝐧𝐞 𝟑𝟏 𝐌𝐚𝐭𝐭𝐞𝐫𝐬

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

🏠 𝐐𝐮𝐢𝐜𝐤 𝐓𝐢𝐩

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.

💬 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. 𝐃𝐞𝐞 𝐌𝐚𝐫𝐭𝐢𝐧 𝐑𝐞𝐚𝐥𝐭𝐲 𝐆𝐫𝐨𝐮𝐩 903-991-HOME• Remax, Alight

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