Do you work for yourself and want to buy a house? You're in luck! While it's not always as easy to get financed when you're self-employed, it's not impossible either especially if you know where to start. More than 10 percent of all workers in the United States are self-employed, and lenders and sellers aren't ignoring them completely. Our real estate agents are here to help all home buyers in Las Vegas and that includes those who work for themselves. You just have to counteract potential disadvantages by planning ahead, coming prepared, and documenting everything.

Before you commit to a lender or make that first bid, here are some simple steps you can take to improve your chances and reduce your risks:

1. Wait At Least Two Years
   A two-year history at the same job is the ideal minimum for lenders who want solid proof of a consistent employment status and income. Even if you're self-employed, longevity is a good look, so it's important to wait until you have a pattern of self-employed work to show. Waiting is also smart if your income fluctuates because your lender will average your last two years' worth of income to estimate the next one. Have you been self-employed for less than two years? That might be okay if you have a history of employment in the same career field.
   
   
2. Document Your Income in Detail
   Documenting your income is piece of cake when you have a stack of pay stubs from an employer. But when you work for yourself, you're responsible for providing the details and bank statements that explain your income. Do you keep ledgers, invoices, or receipts throughout each year? Do you have easy access to all the bank statements that show how much you've earned? Don't worry about an official legal format; your lender just needs the numbers. If they have questions or require further documentation about anything, you will hear from them.
   
   
3. Be Smart at Tax Time
   As a self-employed worker, you're probably used to eyeing every little expense as a potential tax deduction. But when it comes to buying a home, your taxable income is the most important number, because your lender will only look at the amount you make after deductions. You will need to provide your 1040 tax returns for the last two years, so they'll see exactly how much money you kept. Your expenses will eat away at the final number, so think twice about writing off one-time investments that make your average income look smaller. Just be smart about your deductions for now, because a lower interest rate for decades to come will save you more money than a couple years' worth of tax refunds.
   
   
4. Shop Around for a Lender (& Interest Rate)
   Higher risks for the lender mean higher interest rates for the home buyer, and you don't want to get stuck paying too much. Some mortgage lenders will consider you a higher risk than others, so don't accept the first quote you get or sign with the first lender who is willing to pre-approve you. Remember: interest really adds up, and while you can refinance down the line (after you've proven your professional stability), it's important to get that figure as low as possible before you sign on the dotted line. Another way to reduce interest is to pad your down payment, so tap into your savings and investments if possible too.

Are you self-employed and ready to start looking at Las Vegas homes for sale? Our agents are ready to help. Contact Wardley Real Estate to get started.