Why do lenders need tax returns

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Sign up to stay up to date with the latest mortgage news, rates, and promos. Enter your email. Stay informed. Providing accurate tax returns is essential to getting the business financing you need, with terms that work best for you. Ready to get started? Fill out a short form on our website at Get Started and a loan officer will contact you. In Texas call Bill Ebersole at , ext.

In Louisiana, call Jeanne Bergeron at or email her at jeanne communitybusinessfinance. Get Started. Success Stories. Tax returns verify your income Perhaps most importantly, lenders use your tax returns to verify your income. Getting a mortgage as a self-employed borrower can be harder, but it is not by any means impossible. These write offs can greatly lower the income reported on your tax documentation, and this can impact your ability to qualify for a mortgage.

Additionally, self-employment income tends to fluctuate from year to year. By Marcie Geffner. Shopping for a home-mortgage loan? Prepare to hand over real proof of your taxable income. Can it reinvent itself after the pandemic? Marcie Geffner.