The following are some of the ways lenders will calculate your income:
These different ways can make a big difference to what you can borrow. Every lender will interpret your tax returns differently and will consider your skills and industry experience to determine how to assess your income.
There is a difference between what is your taxable income and your actual income. Lenders may add back expenses that reduced your taxable income but they are not a real expenses or an ongoing commitment.
Adding back expenses can have a positive effect on your income which will increase how much you can borrow!
The following are some of the examples of add backs:
A Low doc home loan has less documentation requirements than a standard (Full Doc) home loan. Also referred to as alt doc home loans by a few lenders, it is a great way to borrow with less or alternative paperwork and financial documentation. The process is also much faster, simplified and easy to work with.
As you can see self employed home loans are complex and each lender is different to how they assess your income and what their minimum requirements are. Unfortunately we see many self employed borrowers deal directly with their bank which leads to long wait times and ultimately a NO!
To ensure you have the best chance of gaining home loan approval let BestLend work for you. We will assess your financial position and documentation to determine the best path for a fast and easy home loan approval. Fill in your details below and one of our team will contact you.