Self-employed
Self-employed? Your income still counts.
Lenders typically average your net income from tax returns over two years, adjusting for certain add-backs such as depreciation. That means the way you file can change what you qualify for. Talk with Lorrie before you file if you plan to buy within the year.
How lenders read your returns
A Schedule C, 1099, or K-1 each tells a different story. Underwriters look at net income, trends, and what can be added back. A strong year followed by a weak one is read very differently from steady numbers.
Talk to Lorrie before you file
Writing off more lowers your tax bill and your qualifying income at the same time. Lorrie can help you understand the tradeoff while you still have choices. She does not give tax advice, so loop in your CPA too.
What to gather
Two years of personal and business returns, a year-to-date profit and loss, and recent bank statements. Upload them through the secure portal, never by email.