Mortgage process loosens for self-employed

Sep 18, 2017

By Aaron Anderson

Relax. Applying for home financing doesn’t have to be complicated.

As a business owner, when you hear the term “mortgage,” do you get that same dreadful feeling in your stomach as when you’re heading toward the 347 during rush hour? You shouldn’t. With proper planning and some patience, like the 347, the process can go smoothly. Here are some tips:

Talk to your mortgage advisor about the paperwork requirements 5-6 months before your planned purchase if you can. Did you know, in some cases, lenders will only require the most recent tax return filed with the IRS? Gone are the days where 2-3 years of returns are always required.
You can use cash that’s held in business accounts for your down-payment and closing costs. It may be easier to document these funds than transfer funds to personal accounts.
Lenders have programs that allow bank statements alone to document your income.

Due to the recovery of housing and strengthening economy, banks and mortgage providers are doing what we can to expand mortgage offerings. This includes looking for ways to assist small business owners and self-employed borrowers. Put yourself in a position to take advantage of this expansion and make home ownership part of your plan.

Aaron J. Anderson is a senior loan officer at HomeStreet Bank. His NMLS ID is 595229.

This column appears in the September issue of InMaricopa.