A report from Curbed has outlined the steps for self-employed borrowers looking to secure a mortgage. It also revealed that unfortunately, self-employed folks must go through a little more paperwork in the process of securing a mortgage.
"Applying for a mortgage as a self-employed individual can be tricky, but there are a few key ways to look your best in front of banks," according to Curbed.
The publication breaks down the process for self-employed folks in a few categories. They include: detailed work history, reducing tax deductions, being aware of your tax status and being able to prove your profitability.
While this is important information for borrowers, the publication also revealed an important statistic for lenders and mortgage professionals. Curbed cited the Bureau of Labor Statistics, which estimated that more than 10 million Americans will be self-employed by 2026. Meanwhile, another estimate from the Freelancing in America report stated that upward of 53 percent of Gen Z freelanced in 2019.
Streamlining the application process for self-employed borrowers may not be such a bad idea for lenders who are looking to diversify its business. To learn more about the mortgage application process for those who are self-employed, click here.