How to get a mortgage for self employed clients

5. Make a large down payment

Lenders generally view you as less of a risk if you make a larger down payment, since by doing so you will have less debt to repay. Additionally, your monthly mortgage payments will be less, and you will have less money borrowed if you default. Having a down payment of over 20% can also save you from having to pay personal mortgage insurance.

Not only will a large down payment likely make it easier for you to qualify for a home loan, but it will also give you access to better terms such as a lower interest rate.

6. Prepare all your financial documents

The mortgage professional you are working with will let you know which financial documents you have to provide. While it can vary, bank statements and tax returns are most requested, so ensure you have those handy.

Since self-employed homebuyers usually have more complex sources of income, they typically have to dig more deeply, which may mean connecting your accountant with your lender or provided more proof of income.

7. Make your income history readily available

Most lenders will want to see your income history for at least the past year. For that information, lenders will most likely review your tax return. For this reason, you might want to change your approach to ensure you have a tax return that shows a strong net income, especially if you are in the habit of using a lot of write-offs.