Get Mortgage Preapproval Self Employed Borrowers Love

Income Verification Challenges

Self-employed individuals often have fluctuating income, making it challenging for lenders to assess risk. To mitigate this, lenders typically average your net income over the past two years. It's crucial to ensure that your reported income on tax returns accurately reflects your earnings, as discrepancies can complicate the preapproval process². Keeping your financial records organized and transparent is key to overcoming these challenges.