Self-Employed Mortgage Checklist

Documents You May Need When Applying for a Mortgage

If you’re self-employed, your lender may ask for a few extra documents to help verify your income, business history, and financial stability.

Show proof of self-employment income
Mortgage lenders typically ask for the following documents as proof of income for the self-employed:

• Personal federal income tax returns

  Usually the last 2 years of complete federal tax returns, including all schedules.

• Business tax returns

  If you own a business, you may need to provide business returns for the last 2 years.

• Business profit and loss statement

  A current snapshot of your business income and expenses for this year.

• Recent Business Balance Sheet

  A snapshot of your business account balances for this year.

Verify Self Employment
Lenders may ask self-employed applicants to submit some of the following documents to prove self-employment:

• Business licenses
• Client List or Contracts
• Proof of Business Insurance
• A letter from a professional organization that can confirm your membership

Boost Your Financial Profile
There are several ways to make your application more appealing to lenders. Consider the following tips:

• Check your credit report for errors or major negative remarks that may harm your approval odds.

• Monitor your debt-to-income ratio and consider paying down debt to achieve 45% or lower.

• Consider a larger down payment to lower your total loan amount and borrowing risk.

• Apply with a co-signer or co-borrower with a strong credit history who accepts being responsible for loan payments if you can't make them.

Every loan is different. Your loan officer may ask for more or fewer documents based on your income, business type, and loan program.