Self-employed? Bring the whole story.

Your income deserves context

Business owners, freelancers and independent contractors often have a financial story that does not fit neatly on a single pay stub. Mortgage review may consider the stability and history of earnings, business performance, ownership structure and the documentation required by the program.

A healthy business bank balance is not automatically the same as qualifying income. Deductions, recurring expenses and year-to-year changes can affect the lender’s analysis.

Prepare useful records

• Personal and business tax returns or transcripts, when required.
• Relevant schedules, ownership details and the nature of the business.
• Current profit-and-loss information and balance sheet, when requested.
• Personal and business asset statements.
• Explanations and supporting records for major income changes.

Avoid one-size-fits-all assumptions

Documentation requirements vary. Some conventional guidance provides specific exceptions to standard documentation, and other programs have their own rules. A statement such as “every self-employed borrower needs exactly two years of returns” can be misleading.

Have the conversation early

Before you are under contract, discuss the type of income you receive and how long you have earned it. Harman can help identify which records need review and where more clarification may be necessary.