The Mortgage Moment Blog: Do You Own A Small Business? Find Out What You Need To Know About Mortgages

Do You Own A Small Business? Find Out What You Need To Know About Mortgages

Do You Own A Small Business? Find Out What You Need To Know About Mortgages





Small Business Owner? Here’s What You Need To Know About MortgagesIf you are an entrepreneur or a small business owner, you probably know that there are a lot of advantages to this lifestyle – the freedom, the exciting challenges, the opportunities and the ability to make a living doing what you love.


However, you also know that being a small business owner can make some things more challenging – such as apply for a mortgage for your home.


Many small business owners find it tough to get approved for a mortgage, because their income can be erratic and the banks want to see proof of consistent earnings over a significant period of time.


However, it is possible to qualify for a loan as a small business owner. Here are some important things that you need to know about the process:


Ask Your Mortgage Lender What They Look For


If you ask your mortgage lender, they will probably offer you a checklist for putting together all the information needed in your mortgage package. It should have instructions on what specific documents you need to include if you are self-employed.


Filling Out The Right Forms


When applying for the loan, you will need to fill out IRS Form 4506-T, which is a Request for Transcript of Tax Return. This is basically a form that will allow the lender to look at your tax returns from the IRS, which shows proof of your earnings.


You are not able to show lenders copies of your tax returns. They must get them directly from the IRS themselves.


Submitting A Profit And Loss Statement


It can also help to ask your accountant to prepare a Profit and Loss Statement, which highlights the amount of money that you have brought in compared to the expenses of setting up your business.


If you present several of these on a quarterly basis, it will prove to the bank that your business is growing and is profitable enough to cover your mortgage.


The important thing to remember is not to give up on the idea of owning a home just because you are a small business owner. Ask your accountant for help and take the time to submit the right proof of earnings, so that you get the mortgage for your dream home.

If you are a small business owner and need some help with this topic please contact Mark Taylor at 602.361.0707 or by email at  

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Do You Own A Small Business? Find Out What You Need To Know About Mortgages




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Comment balloon 2 commentsMark Taylor Mortgages • June 03 2014 08:01AM


Hi Mark - this is a great checklist for self-employed folks to read before trying to get a mortgage.  As you mention, the key is consistent income.

Posted by ReadySetLoan Condo Approval Team, The FHA/VA Condo Project Approval Specialists (ReadySetLoan Condo Team LLC) about 5 years ago

Here’s an easy guide on how to go about getting ready to apply for a small business loan.

1. What criteria do banks search for in making small business loans?

2. What information will you need?

3. How can you set yourself up from the start to make the process easier?

4. What is the typical size of a small business loan?

5. How can you get financing to begin a business since several banks want to fund growth?

6. Are there associations that can help?


Posted by Courtney Graley, Engineer over 3 years ago