![]() Your business’ profit-and-loss statements.Your bank statements, taking the average deposits from the last one to two years.Your last two to three years of tax returns, specifically the net income reported on Schedule C, which is where you calculate profit or loss from a business you operate or a profession you practice as a sole proprietor.Typically, lenders will evaluate your income by looking at: This can help you gauge how much house you can afford, as well as what loan programs you may qualify for. Next, you’ll want to take a look at your income from a lender’s perspective. ![]() Calculate your income and what you can afford For example, most real-estate agents are considered self-employed since they work as independent contractors and only earn income when they make a sale. In general, if the bulk of your income is reported via 1099 -a type of IRS form that businesses must file for nonemployee payments-you will likely be considered self-employed.
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