SELF EMPLOYED HACK FOR BUYERS

The Self-Employed Mortgage Mistake That Starts at Tax Time

One of the biggest misconceptions among self-employed borrowers is that qualifying for a mortgage starts when you submit an application.

In reality, it often starts months earlier—when you file your tax return.

Most business owners work hard to reduce their taxable income. That's smart tax planning.

But when it's time to buy a home, those same write-offs can make it look like you earn less than you actually do.

That's where many borrowers get caught off guard.

The good news is that traditional financing isn't the only option.

Depending on your situation, programs like bank statement loans may allow income to

be documented differently, giving successful business owners another path to

homeownership.

The key is planning ahead.

If buying a home is part of your goals over the next year, talk with your lender before

tax season—not after you've found the perfect property.

A little planning today can create a lot more flexibility tomorrow.

— Michael Belfor

American Pacific Mortgage