Buying a House when Self-Employed | Ukiah Real Estate

If you're self-employed and not quite sure how or what you need to do to get pre-approved to buy a house, this is the perfect video for you. So stay tuned!

My name is Kasie Gray, your homegirl, broker associate here in Ukiah, and of course a self-employed person. So who better than me to tell you what you as another self-employed person need to do to get a mortgage before I get started talking some more about the details, the juicy deeds, make sure to subscribe and follow me on Instagram, and all that good stuff!

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So when getting a loan for self-employed people, it's a bit more challenging than a normal w-2 person just because there are different forms and documents that we need to provide that normal civilian just doesn't need to have because they just don't have it they just get their paychecks. They just that's it they file for their taxes very easily as a 1099 person and there are some more things that come into play to approve your income. You need a couple of things in the last two years of your tax returns for both you and your business.

If you file separately year-to-date profit and loss statements, a current balance sheet a letter from your accountant that is stating that you're still in business that might not be applicable just depends on what the lender requires and your bank statements. So when talking to a lender, it's good to have all those things ready to go and they'll also need to see a proof of id, a proof of address, your w2s if you have any, and your 1099s. Then like I said, your bank statements if you are interested in getting them pre-approved with a mortgage lender.

It's very important to start a little earlier than I would suggest for most people when you're self-employed you're able to deduct a lot of things from your business but that also comes out of your net income. I always suggest, you know, obviously talk to your tax person, talk to a lender, see what your net income needs to be at to make sure you're able to get pre-approved for the loan amount that you desire.

That's just one of the things that we have to struggle with and we you know ultimately get the choice on what we deduct and don't deduct but it's just important to make sure that you're prepared for what might come. Because I know a lot of people make a ton of deductions and then they're left with a small net income which does not help in getting a mortgage.

So obviously, talk to your tax person, or your mortgage person, if you need help connecting with a mortgage person, feel free to reach out to me and I'd be happy to connect you with some really great lenders that work with self-employed people.

As always, I'll have a link down below to my vendor's page on my website where I have a bunch of preferred lenders linked. so if you have any questions at all about being self-employed and getting a mortgage please reach out to me I'd be happy to answer any questions that you might have!