How to Get a Mortgage When You’re Self-Employed: A Step-by-Step Guide

If you’re self-employed, you may already know that getting a mortgage can feel a bit more complex than it is for W2 employees. But don’t let that discourage you—getting a mortgage when you’re self-employed is entirely possible with the right preparation and guidance.

In this guide, we’ll walk through the key steps and tips for self-employed individuals looking to secure a mortgage.

1. Start the Process Early

When you’re self-employed, your financial situation can be more nuanced. That’s why it’s critical to start the mortgage process early. Before you begin browsing homes or determining your budget, reach out to a mortgage expert who has experience working with self-employed buyers. This will help you understand what documentation and steps you’ll need to complete.

2. Gather Your Documentation

For W2 employees, the mortgage process often relies heavily on pay stubs and employment history. However, as a self-employed buyer, you’ll need additional documentation to prove your income. This typically includes:

• At least two years of personal and business tax returns
• Profit and loss statements
• Bank statements
• 1099 forms (if applicable)

The more organized your paperwork, the smoother the process will go. Your mortgage expert will help guide you on exactly what you need to provide.

3. Expect a More Detailed Review of Your Finances

Lenders will want to get a clear picture of your income stability. Because self-employed income can fluctuate, underwriters may take a closer look at your average earnings over time. This is why submitting complete and accurate documentation is key to getting approved.

4. Be Prepared for a Larger Down Payment

While it’s not always the case, many self-employed buyers find that lenders require a larger down payment due to the perceived risk. Putting down more money upfront can also help you secure a lower interest rate.

5. Work with an Experienced Mortgage Expert

The mortgage process can be more involved for self-employed individuals, but working with a knowledgeable mortgage expert can make a world of difference. They can help you navigate the additional steps, ensuring everything is in place to get you approved for your loan.

6. Be Patient—It’s Worth It

The extra steps may require more patience, but the end result—a home you love—will be worth the effort. By starting early, gathering the right documents, and working closely with a mortgage professional, you can navigate the process with confidence.

If you’re self-employed and ready to start the home buying process, contact me today! I would be honored to help you secure the mortgage you need for your dream home.