Honestly, I’m right there with you.
I just started the mortgage process and my lender keeps asking for more docs because my freelance gigs don’t fit their “normal” pattern. It’s like, does it really matter if the money’s coming in every month? The hoops are wild.“It’s frustrating how tax returns can paint such a limited picture for self-employed folks.”
It’s wild how much paperwork they want, right? I’m in the same boat—been running my own thing for a few years, and every time I try to do something “normal” like buy a house, it feels like I’m being punished for not having a W-2. Like you said,
Apparently, it does... but only if it comes in the way they expect.“does it really matter if the money’s coming in every month?”
Last year, my lender wanted letters from clients, proof of future contracts, and even explanations for random deposits. I get that they need to be careful, but sometimes it feels like they’re just looking for reasons to say no. The kicker? My income is actually more stable now than when I had a regular job. Go figure.
I guess the system just isn’t set up for people who don’t fit into neat little boxes. It’s frustrating, but I try to remind myself that jumping through these hoops is just part of the deal if you want to own instead of rent. Still... doesn’t make it any less annoying.
Man, you nailed it with the “neat little boxes” thing. I swear, every time I apply for a mortgage, I feel like I’m auditioning for a reality show called “Prove You’re Not Broke.” Last time around, they wanted two years of tax returns, a letter from my accountant, and—get this—a signed statement explaining why my business income fluctuated in Q3. Uh, because that’s how business works? Try explaining seasonality to someone who’s only ever seen a pay stub.
The wild part is, when I had a regular 9-to-5, my finances were way shakier. Now I’ve got multiple properties bringing in rent every month, but apparently that’s not as reassuring as a single W-2. Makes zero sense.
I get that lenders have to cover their butts, but sometimes it feels like they’re just making up new hoops for fun. At this point, I half-expect them to ask for a blood sample or a video of me reciting my business plan backwards. Just gotta laugh about it... otherwise you’ll lose your mind.
I hear you on the hoops—they get wilder every year. Had a client once who was asked to explain a $200 Venmo from his mom, like it was some secret offshore account. The irony is, self-employed folks often have way more financial discipline than people with a single paycheck. But yeah, the system loves its tidy little boxes... even if real life doesn’t fit.
The irony is, self-employed folks often have way more financial discipline than people with a single paycheck.
I get where you’re coming from, but I’ve seen both sides of this. Not every self-employed person is as disciplined as you’d hope—some are great, but others have cash flow all over the place and can’t track expenses to save their life. Lenders see that unpredictability and freak out.
- Banks want consistency. If you’re self-employed and your income jumps around, it’s tough for them to gauge risk.
- I’ve had buyers who run super tight businesses, but then they mix personal and business accounts... that’s a red flag for underwriters.
- On the flip side, I’ve also seen W2 folks with steady paychecks who are terrible with money, but the system just checks the box and moves on.
It’s not always about discipline—it’s about what’s easy for banks to measure. Real life is messy, but lenders don’t like messy. That $200 Venmo from mom? It’s just another thing they can’t categorize neatly.
