Mortgage FAQs

Often, yes. Write-offs that lower your taxes also lower the income a lender can count on a standard loan. Programs built for self-employed borrowers can qualify you on 12 or 24 months of bank deposits, a CPA-prepared profit and loss statement, or your assets instead of tax returns. Terms on these programs differ from conventional loans, so a loan officer should compare both for your situation.

Not always. Many conventional loans look for two years of self-employment, but some programs consider one year, especially if you worked in the same field before. A loan officer can tell you which programs fit your history before you house hunt.

It depends on the program and how your business is set up. Some programs use personal statements, some business, and some both. Bring a few months of each to your first conversation so the loan officer can see which works best.

It can slow things down. Underwriters need to trace where large deposits came from, so every transfer adds paperwork. If you can, keep your down payment in one account for a few months before applying, and keep statements showing any moves.

Lenders add their own rules on top of agency guidelines, and they calculate self-employed income differently. Some also don’t offer bank statement or P&L programs at all. A lender that specializes in self-employed files may see options another one missed.

A preapproval is a lender’s early review of your credit, income and assets. Approval comes after an underwriter verifies your documents and the property. Ask your lender whether your letter was reviewed by an underwriter; a fully underwritten preapproval carries more weight with sellers.

Yes, it happens. Common reasons are new debt, a job or income change, an appraisal issue, or documents that don’t match the application. Avoid opening new credit, changing jobs or moving large sums until after closing, and answer underwriting requests quickly.

Usually it’s better to wait. A new car payment adds to your monthly debts, which can lower how much you qualify for. Talk to your loan officer before taking on any new loan or credit card.

Before you start touring homes. An early conversation shows you a realistic price range, what documents you’ll need, and what to fix first. For self-employed buyers, starting early matters even more.

Plan for closing costs, prepaid property taxes and homeowners insurance, the first deposit into your escrow account, and sometimes reserves. Your Loan Estimate lists these, so ask for one early and compare line by line.

Sometimes. Withdrawals and 401(k) loans can be used if they’re documented, but they can carry taxes or penalties. Talk to a tax professional first, then share the paperwork with your loan officer.

A lock holds your rate for a set number of days. If closing slips past it, an extension may cost money, and who pays depends on your lender and your contract. Ask about lock length and extension terms before you lock.

Yes. Texas has state and local programs, and some are open to repeat buyers. Eligibility rules and income limits apply, funds are limited, and some assistance must be repaid. A loan officer can tell you which ones fit.