“The mortgage process is slightly different for those who are self-employed,” Eric Hamilton, president of Vanderbilt Mortgage and Finance, Inc., said. “We’re happy to offer some helpful advice we have given to self-employed applicants over the years.”
As a self-employed business owner or contractor, applying for a mortgage is different from traditionally employed applicants. This is due primarily to regulations all lenders must follow regarding documenting the ability to repay a mortgage loan. During the application process, self-employed applicants may be required to fill out a 4506T form. This form allows the lender to request tax transcripts, such as recent income filings needed for review when processing a loan application. A profit-and-loss statement prepared by an accountant and a balance sheet may also be required to exhibit income continuity between tax filings.
Providing lenders with accurate and verifiable income information is a requirement for all borrowers for most loan programs, regardless of type of employment. In general, being financially prepared before applying for a loan can simplify and ease the application process for anyone looking to finance a home purchase. Some factors to consider include:
Paying off long-term debt
Saving up for a large down payment
Working to improve credit scores
Building up an emergency fund
Lowering one’s monthly debt
“It’s important to be prepared before you start a mortgage application,” Hamilton said. “Getting your finances in order will make the process a lot smoother. We believe homeownership makes lives better, and the application process is only a small step in the customer’s journey to owning a new home.”
For additional buyer resources and guides, visit the Buyer Resources library. To learn more about Vanderbilt Mortgage and Finance, Inc., visit www.VMF.com. All loan programs are subject to credit approval.
About Vanderbilt Mortgage and Finance, Inc.
Vanderbilt Mortgage and Finance, Inc. is a national housing lender that specializes in financing manufactured homes. In business for more than 40 years, the company currently services more than 180,000 home loans and works hard to tailor loans to each family’s needs. Vanderbilt has an A+ grade from the Better Business Bureau and is a Berkshire Hathaway company. For more information, visit VMFHomeLoan.com.
Vanderbilt Mortgage and Finance, Inc., 500 Alcoa Trail, Maryville, TN 37804, 865-380-3000, NMLS #1561, (http://www.nmlsconsumeraccess.org/), AZ Lic. #BK-0902616, Loans made or arranged pursuant to a California Finance Lenders Law license, GA Residential Mortgage (Lic. #6911), Illinois Residential Mortgage Licensee, Licensed by the NH Banking Department, MT Lic. #1561, Licensed by PA Dept. of Banking.