If you work for yourself and are thinking about buying a home or refinancing, historically low mortgage rates aren’t out of reach.
But first, you have to qualify for the mortgage. As the unemployment rate stays high, lenders are trying to predict whether potential borrowers will be able to make payments. They’ll check — and then double-check — that your income hasn’t been impacted by the pandemic.
“Self-employed people have to jump through hoops like never before,” says Nicole Rueth, producing branch manager of Fairway Independent Mortgage Corp. in Englewood, Colorado. “The paper trail is much more extensive than it’s ever been.”
As mortgage rates continue to dip below 3%, here’s what self-employed people can do to prepare for a mortgage application and score a rock-bottom rate.
Income documentation you’ll need
“Income verification” might sound