If you need assistance, please call 702-428-3969

Work For Yourself? Make Sure To Avoid These Mortgage Mistakes

Monday, November 18, 2019   /   by Fona Abad

Work For Yourself? Make Sure To Avoid These Mortgage Mistakes


There are currently over 16 million self-employed workers in the United States—and as the gig economy continues to grow, the number of self-employed individuals only stands to increase. But even though working for yourself is becoming more common, it still presents certain challenges when obtaining a mortgage—and if you want to successfully buy a home, you need to know what mistakes to avoid.


According to an article from Realtor.com, there are three crucial mistakes self-employed individuals need to avoid when obtaining a mortgage, including:



  • Erratic income. As a self-employed person, you’ll be required to submit at least two years of federal tax returns. This proves to your lender that your business provides the stability necessary to pay your mortgage each month—which is why having steady income is so important. Obviously, minor fluctuations are fine—but in order to show your lender you’re a qualified candidate for a mortgage, you should be able to prove your business pulls in stable or steadily increasing income.

  • Carrying business purchases on your personal credit cards. There are costs associated with running a business. But if you pay for those costs on your personal credit cards—and carry the associated debt—it can impact your debt-to-credit ratio, making it harder to secure a mortgage. Carrying high credit card balances can also negatively impact your credit score, which will further hurt your chances with lenders.

  • Not having your paperwork straight. There’s a ton of paperwork that goes along with securing a mortgage—but there’s even more when you’re self-employed. In addition to your tax returns, you may also need to provide a profit-and-loss statement, as well as additional financial documentation for your business. Before you apply for a mortgage, make sure you have all of your financial paperwork—business and personal—ready to hand over to your lender.


As a self-employed individual, you can absolutely secure a mortgage and buy the house of your dreams—it’s just important to understand any potential roadblocks you might face (and mistakes you need to avoid) in order to make the process as simple and straightforward as possible.

Realty One Group - Las Vegas - Petrosian Real Estate
Nathan Petrosian
8395 W Sunset Rd #190
Las Vegas, NV 89113
702-428-3969

UP5DB701E1507748.jpgThe data relating to real estate for sale on this web site comes in part from the INTERNET DATA EXCHANGE Program of the Greater Las Vegas Association of REALTORS® MLS. Real estate listings held by brokerage firms other than this site owner are marked with the IDX logo. The information being provided is for the consumers' personal, noncommercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. GLVAR MLS deems information reliable but not guaranteed. Copyright 2021 of the Greater Las Vegas Association of REALTORS® MLS. All rights reserved.
This site powered by CINC: www.cincpro.com