Self-employed individuals need to let their accountants know they will need to be getting a mortgage. I have heard so many self-employed borrowers tell me they have the best accountant in the world. They always say, "sure we don’t show a profit or just a little, so that we don’t pay any taxes."
Here is the bottom line: if your business doesn’t show a profit, most likely, you won’t get a mortgage. There are exceptions to that statement, but most of the time, that is the way it is. So many have said, "but we bring in thousands of dollars?" "My immediate question, how much of that money do you keep?
I have coached many self-employed individuals and often their accountants. No one wants to pay more in taxes, but sometimes the choice is as simple as get the mortgage you may need or want or you won’t get the mortgage.
Check out this article for some great tips for self employed borrowers:
By: Scott Sheldon