Self Employed Borrowers

Renting can be miserable. From terrible landlords to noisy neighbors, I’ve seen it all. Awful renting experiences are why my husband and I decided to buy sooner than later, but what if you’re not sure if you can be approved for a mortgage? It can be very scary talking mortgages when you’re self-employed but if you don’t get out of that rental you are going to lose your mind! Don’t worry, I’m going to break down some facts for you.

It can be more difficult for self-employed borrowers to prove their income than those who are paid by their employer. When it comes to qualifying a self-employed borrower, lenders needed a simpler, faster way to underwrite income. When determining a self-employed borrowers’ income, Stockton takes the time to use bank statements. It works like this: a Stockton Mortgage Banker looks through the provided bank statements, which could be from a personal or business account, and adds together the amount of each deposit made over the course of a calendar year. Then that total is divided by 12 to arrive at a monthly income.

By using this method to calculate monthly income, Stockton Mortgage has been able to assist many self-employed borrowers to purchase homes ranging from $100,000 into the millions (a maximum loan amount of $2,500,000). Also, consider this: an estimated 15 million Americans were self-employed in 2015, according to the Bureau of Labor Statistics. To me, that means that you and a Stockton Mortgage Banker will be a perfect pair. Life is not a cookie-cutter circumstance and everyone has their own baggage. It’s important to have the right team behind you with the knowledge to get the job done. Want to take this conversation further? Connect with a mortgage office today!

Until next time,

Savanna