Priscilla Romasco Kryger | Whitinsville MA Real Estate, Uxbridge MA Real Estate, Douglas Real Estate


As the workforce changes and a growing number of companies seek out contractors and freelancers, many Americans find themselves in a gray area when it comes to their income. They may put in full-time hours, but on their taxes they work for themselves.

Mortgage lenders are cautious about who they lend to. They want to make sure you are a low-risk investment who has reliable, predictable income to ensure that they’ll earn money off of your loan.

This can sometimes make it difficult for freelancers, contract workers, or the self-employed. Not only might your taxes be unconventional, but your income could vary depending on the time of the year and the amount of business you receive.

It’s easy to see why many people would be anxious about applying for a mortgage under these circumstances. However, if you’re self-employed, there’s no need to worry. You can still get approved for a mortgage at a fair interest rate--you just need to do a bit of work to provide the right documents to your lender.

In this article, we’ll show you what documents and proof of income you’ll likely need and how to present it to a lender to make the process run as smoothly as possible to get you approved for your mortgage. Here’s what you need to do.

Organize your records

Before applying for a mortgage, it’s a good idea to take a look at your record-keeping process. As a self-employed worker, you’re probably already used to tracking your own income. However, this will help the lender analyze your income easier and move the process along more quickly.

Having a master spreadsheet of your dated invoices, paid amounts, and the names of your clients is a good place to start. You’ll also want detailed, easy to read information for your previous employers, landlords, references, and any other information you think will be pertinent.

Next, gather your tax documents for the last three to five years. As a self-employed worker, you likely file a Schedule C (Form 1040) and a Schedule SE. Make sure you have copies of these forms.

Dealing with deductions

Many self-employed workers write off business expenses in their tax returns. Travel expenses, internet, and other costs associated with doing business are all ways to save by reducing your taxable income. Doing so can save you money, but it can also reduce your net income which is what lenders will see when you provide them with your information.

If you’re hoping to get approved for a bigger loan, one solution is to plan your taxes in the year prior to applying for a mortgage. Make fewer deductions than you normally would to increase your net income.

Be ready to clarify

When a mortgage lender is reviewing your information, make sure you are open and available to provide any information that can be helpful to them in considering your application. Being prompt and accurate with your responses will signal to your lender that you are willing to work with them.



1100 Hill St, Northbridge, MA 01588

Single-Family

$349,900
Price

9
Rooms
3
Beds
2
Baths
This Colonial was completely remodeled from the studs out in the late 80"s. This home sits on 1.75 acres with a 20 x 40 fenced inground pool and also has a barn which houses the vehicles with an upper loft for plenty of storage space and also lower storage. The barn has a new roof and also new fully support work. Pool liner is under 5 years old and also pool motor. The kitchen has nice oak cabinets and also a center island with Corian top, Nice bow window with a view of the pool. Large living room with wet bar and bow window. The dining room is a great size for all of your gatherings and there is a permitted pellet stove that will keep you quite cozy all winter long. In the late 90"s an addition was put on that included huge master bedroom with double closets. There is a second bedroom on the first floor plus an office. The second floor would be a great Au-Pair sweet or Teen suite with it's own entrance. Full bath, living room, bedroom, and kitchenette. Come and check this beauty out!
Open House
Saturday
October 12 at 11:30 AM to 1:00 PM
Cannot make the Open Houses?
Location: 1100 Hill St, Northbridge, MA 01588    Get Directions

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1100 Hill St, Northbridge, MA 01588

Single-Family

$359,900
Price

9
Rooms
3
Beds
2
Baths
This Colonial was completely remodeled from the studs out in the late 80"s. This home sits on 1.75 acres with a 20 x 40 fenced inground pool and also has a barn which houses the vehicles with an upper loft for plenty of storage space and also lower storage. The barn has a new roof and also new fully support work. Pool liner is under 5 years old and also pool motor. The kitchen has nice oak cabinets and also a center island with Corian top, Nice bow window with a view of the pool. Large living room with wet bar and bow window. The dining room is a great size for all of your gatherings and there is a permitted pellet stove that will keep you quite cozy all winter long. In the late 90"s an addition was put on that included huge master bedroom with double closets. There is a second bedroom on the first floor plus an office. The second floor would be a great Au-Pair sweet or Teen suite with it's own entrance. Full bath, living room, bedroom, and kitchenette. Come and check this beauty out!
Open House
Saturday
October 12 at 11:30 AM to 1:00 PM
Cannot make the Open Houses?
Location: 1100 Hill St, Northbridge, MA 01588    Get Directions

Similar Properties




15 Cedar, Millbury, MA 01527

Single-Family

$299,900
Price

7
Rooms
4
Beds
2
Baths
Showings start at Open House 9/29 from 12-2 PM. Welcome to 15 Cedar Ave. It's all about LOCATION!! This Classic Cape is set on a beautifully landscaped lot. Pride of ownership shows here. Fully applianced kitchen with oak cabinets and vinyl flooring. Formal dining room for all of your gatherings. Fireplaced living room. Two first floor bedrooms with hardwoods.First-floor bath w/tile, tub, and shower. The second floor has two additional bedrooms with built-in draws and plenty of closet space, and cedar closets. The basement is a huge bonus!!! Finished basement with a full bath and a large family room that has so much more additional closet space and built-in cubbies. Also a permitted woodstove. Garage and tool-shed.Great access to the Mass Pike and T-Station. You don't want to miss this one!
Open House
Sunday
October 13 at 11:00 AM to 12:45 PM
Cannot make the Open Houses?
Location: 15 Cedar, Millbury, MA 01527    Get Directions

Similar Properties




15 Cedar, Millbury, MA 01527

Single-Family

$299,900
Price

7
Rooms
4
Beds
2
Baths
Showings start at Open House 9/29 from 12-2 PM. Welcome to 15 Cedar Ave. It's all about LOCATION!! This Classic Cape is set on a beautifully landscaped lot. Pride of ownership shows here. Fully applianced kitchen with oak cabinets and vinyl flooring. Formal dining room for all of your gatherings. Fireplaced living room. Two first floor bedrooms with hardwoods.First-floor bath w/tile, tub, and shower. The second floor has two additional bedrooms with built-in draws and plenty of closet space, and cedar closets. The basement is a huge bonus!!! Finished basement with a full bath and a large family room that has so much more additional closet space and built-in cubbies. Also a permitted woodstove. Garage and tool-shed.Great access to the Mass Pike and T-Station. You don't want to miss this one!
Open House
Sunday
October 13 at 11:00 AM to 12:45 PM
Cannot make the Open Houses?
Location: 15 Cedar, Millbury, MA 01527    Get Directions

Similar Properties





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