With the nature of work changing, more and more people in Central Massachusetts are working as independent contractors. Sometimes referred to as “gig workers,” I’ve spoken with countless individuals who believe that they can never get a 1099 mortgage approval.
If you are self-employed, you may qualify for a mortgage. In fact, with the right loan officer, it’s easier than you think, even if you don’t work a job that provides you with a W-2.
Here’s what you’ll need for your home loan application
There’s a lot involved in getting your mortgage application together, especially if you’re self-employed. Lenders are looking for very specific information that you’re able to support your mortgage. Anyone not directly employed has to provide this information.
Lenders will need these items for self-employed individuals:
- Proof of where you work and the nature of what you do
- Evidence of stable income
- Information on the financial health of your business
Here are the documents you can provide that will help you substantiate your income:
- Personal tax returns (including W-2s if you’re paid through your corporation)
- Profit and loss forms, which could include a Schedule C, Form 1120S, or K-1, depending on your business structure. They may require audited or non-audited versions. Sometimes, you’ll hear this referred to as a P&L, which shows your lender how much you made and lost over a year.
Remember that the more verifiable income you can show, the better your chances of getting a more favorable 1099 mortgage approval. That’s why it’s essential to save records of your compensation, especially when buying a home.
Don’t be discouraged, though. People with varying income levels can purchase a home. Next, I’ll dive into another key factor that’s weighed out once you decide to apply for a mortgage.
Your credit score is vital, and I can help
Credit scores are key to getting a 1099 mortgage approval. It’s important to have a checklist in place to help you tackle this vital step in your application process.
A mortgage professional can pull your credit for you and develop an action plan should your score need to be raised. We know exactly what lenders are looking for. Besides, we can also help you smash through the mortgage myths that may be holding you back.
A quick phone call with me is a great way to get the ball rolling in unpacking your credit situation.
Yes, it’s possible to get a 1099 mortgage approval
The best part of working as a Mortgage Loan Officer is helping people find a way to get to yes. Thankfully, it’s something I get to do often by helping self-employed individuals get mortgages that work for them.
If you have questions about getting a great mortgage as a self-employed earner, please reach out to me. Contact me to learn what’s possible in your home search.
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