Honestly, I think “prove you’re not laundering money through Etsy” is just the new normal for us. Lenders seem to get heart palpitations if your income isn’t a neat W-2. I’ve had better luck with local credit unions too, but yeah, they move at the speed of a dial-up modem. One tip: some online lenders (like Better or Ally) are a bit more chill about side gigs, but you still end up sending them your entire financial autobiography. It’s wild how much paperwork they want just because you don’t have a “normal” job...
Title: Mortgage hunting nightmare as a freelancer
“prove you’re not laundering money through Etsy” is just the new normal for us.
That line made me laugh, but it’s honestly too real. I’m in the middle of this process right now and it’s like, every time I think I’ve sent them everything, they come back with “just one more thing.” Last week they wanted a letter from my accountant explaining why my income fluctuates (uh, because that’s how freelancing works?). Then they asked for proof that my clients are “real businesses.” Like, what does that even mean? Screenshots of their LinkedIns?
I’ve heard local credit unions are more understanding, but yeah, the pace is brutal. I started with one and after three weeks of radio silence, I had to move on. The online lenders are faster but still want to see every deposit and invoice for the last two years. It’s wild.
Has anyone actually gotten approved without having to basically write a novel about their finances? Or is this just the new standard if you don’t have a W-2? I get that they need to be careful, but sometimes it feels like they’re looking for reasons to say no.
Also, side note—has anyone tried using those mortgage brokers who specialize in “non-traditional” income? Are they worth it or just another layer of paperwork? At this point, I’d almost rather rent forever than keep digging up old 1099s and client contracts from three years ago...
It’s wild how much they want from you, right? I’m in the same boat—been self-employed for years, and every time I think I’ve got my paperwork together, they throw another curveball. The “prove your clients are real” thing cracked me up because I had to do that too. Ended up sending over client websites, contracts, even a couple of business cards. Felt a bit ridiculous.
Here’s what worked for me (well, “worked” is generous—let’s say it got me through the process): I made a folder for every year with 1099s, invoices, bank statements, and tax returns. When they asked for something random, at least I wasn’t digging through old emails. Still took forever, though.
I did talk to a broker who “specializes” in freelancers. Honestly, it was just more paperwork and an extra fee. Maybe some folks get better results, but for me, it felt like another hoop with not much payoff. If you’re risk-averse like me, I’d say stick with credit unions or local lenders if you can—they seem less likely to ghost you mid-process. But yeah, it’s a slog either way.
Honestly, every time I hear “just get a broker!” I wonder if I’m missing some secret sauce, or if it’s just a fancier way to pay more fees for the same headaches. I tried one once—felt like I was paying someone to forward my emails to a lender and then ask me for even more proof that I’m not making up my job. I mean, how many times can I send the same invoice before it’s “real” enough?
The local credit union route sounds solid, though. I’ve noticed they actually return calls, which is a step up from some of the online lenders who just vanish halfway through. Still, does anyone else feel like the rules change every year? Last time, they wanted a letter from my accountant *and* proof my clients existed—which, I guess, is better than asking for a selfie with each one, but still...
Is there a trick to making the paperwork less of a circus? Or is this just the freelancer tax for wanting a mortgage?
Honestly, the circus never really leaves town when you’re self-employed, does it? I’ve found that prepping *way* more documentation than seems reasonable helps—almost like overpacking for a trip. Out of curiosity, did your credit union seem more flexible on income proof than the broker was?
