How to provide proof of income from a personal biz to purchase a home?
I am in the process of looking for a lender to purchase my first home. I recently started my own remodeling biz and like many others I am payed by personal check or cash. What will I expect to run into when speaking with a mortgage company or bank when I try to provide proof of income? I do have a second job to show earnings but it is part time and my major income comes from the remodel business.
3 Responses
The_1
10 Mar 2010
mike1942f
10 Mar 2010
Income tax statement. Or more complicated: Books, statement from accountant.
T Taylor
10 Mar 2010
Unfortunately, you are going to hit some roadblocks. Most lenders require if you are self-employed, that you have been self-employed at least two years before you can use that income to qualify for a home mortgage. If you are working part-time, you would have to have been doing that at least two years as well. They would require that you provide two years of tax returns to show that income.
Word of advice – when you file your taxes with your self employment income, if you write off too much income to lower your taxes, it could hurt you in qulifying for a home mortgage.
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