Freelance-Writer-1024x743One of the main things that lenders consider when approving mortgage is the borrower’s income to support the payments. Lenders require documents specifying this income when you apply for a loan. However, for those who don’t have the 9-to-5 job, like self employed and freelance workers, procuring these documents might be a problem. What can you do if you don’t have work stubs?

Generally, the requirements or criteria for wage earners are the same as with self employed borrowers. The only difference will be the type of documents being shown.

Proof of income
Not only will you need to prove your income is regular and  stable, your tax returns should also reflect this as well. If this poses an issue, you have the option to apply for loans for self-employed workers, which needs bank statements as proof of income. Saving for a hefty down payment would help a lot and will significantly improve your chances of getting approved. You also need to improve your credit, you can request for a free credit report from the major credit bureaus. You should keep good records and mind how they structure their taxes in the year or two leading up to the purchase.

Get pre-approved
You can also improve your chances by getting pre-qualified for a mortgage, which can turn up information the lender can use to determine if you’ll need one or two years of income documentation.

Consult an accountant
Aside from proving that your income is stable, your tax returns will need to as well. Keep good records and mind how your taxes are structured in the year or two leading up to the purchase. It’s wise, then, to speak with an accountant before filing your taxes.