Why Your Mortgage Application Gets Denied Despite High Income

For self-employed individuals, obtaining a mortgage requires clear financial documentation. Here is a summary of the key takeaways:

• Commingled Funds: Mixing business revenue and personal money in a single bank account creates significant problems for mortgage underwriters, making it difficult to assess your true financial situation.
• Lender Verification: Underwriters must verify stable and eligible income. Commingled accounts obscure the source of funds and prevent them from distinguishing repeatable business income from personal transfers, gifts, or loans.
• The Solution: The most critical step for a self-employed borrower is to separate finances by opening a dedicated business account and providing at least two, but preferably six or more, months of clean bank statements.

Read the full blog article here: https://www.iqratemortgages.com/blog/how-commingled-funds-can-kill-a-texas-mortgage-approval