Question about being a shopper as main income and applying for mortgage

In a nutshell, I basically work as a mystery shopper full-time. On average, I do anywhere from 5-25 shops a day (the higher number typically consisting of quick, 5 minute gas shops or something similar). I am in the process of going through a divorce, and let my ex-husband keep our house that we paid cash for. I am wanting to buy a new house for myself, but plan to try to apply for a mortgage this go around. My question is this: realistically, how do I go about showing all of my income, especially if I am paid by Paypal, direct deposits, and checks? I make enough to where I can easily afford a mortgage, but I know that most lenders tend to look down on this type of income since it's not a typical 9-5 job.

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You would go about it the exact same way that you would a W2: records and documentation.

"I told myself to quit you; but I don't listen to drunks." -Chris Stapleton

If you have schedule C from 2019-2021, that should work as proof of income. It did for us.

Agreed. It comes down to having a Schedule C. They will probably want one from at least 2 years, as filed with your income tax. My grandson at age 22 makes a lot of money (well over a $100K a year) as a (largely IT) contractor with income reported on Schedule C. He just bought a house. They made him jump through hoops, but he got a mortgage just before the rates really went up.

Shopping Southeast Pennsylvania, Delaware above the canal, and South Jersey since 2008

In a previous life I was the assistant to two loan officers at a bank. If someone was self employed or an independent contractor we required two years of tax returns plus the last six months worth of bank statements as proof of income.

A little nonsense now and then, is relished by the wisest men.

Edited 1 time(s). Last edit at 06/27/2022 12:12AM by dmm316.

Most lenders value tax returns, particularly when they are accompanied by tax transcripts. A long history of deposit activity is a plus too.

Edited 1 time(s). Last edit at 06/27/2022 11:15AM by Rousseau.

Two years of tax statements and having two different accounts- one personal and one business- for over 10 years at my credit union did the trick for me.

I incorporated, pay myself a salary and pay an assistant to help route and keep track of expenses. Easier and better tax incentives.

Lenders don't "look down" on the self-employed. They just need sufficient proof of sufficient income, which can be difficult to get from some people..

It shouldn't be a problem for the self-employed to get a mortgage if you've declared all of your income (to show you can afford the mortgage), have good current documentation of your income, can supply two years of tax returns, and have good credit. You can self-report year-to-date income if you keep spreadsheets or other ledger-type records, in lieu of an accountant's or tax preparer's statement.

I sold real estate for 25+ years and was hands-on in assisting clients in obtaining mortgages. One of the biggest problems was self-employed people who thought they were being smart by "hiding" income from the government! OT, but the most difficult one I ever had took me and the mortgage broker years, literally, to get one couple to establish enough income (on paper; they had it in reality) and enough credit history to get a mortgage. But we finally did it!

The OP sounds in good shape to buy a home! Good luck!

I learn something new every day, but not everyday!
I've learned to never trust spell-check or my phone's auto-fill feature.

Edited 1 time(s). Last edit at 07/02/2022 03:14AM by BirdyC.

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Question about being a shopper as main income and applying for mortgage

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