You may work as a freelancer. This means your monthly income will fluctuate on a constant basis with some months being more fruitful than others. While you can usually still pay your bills on time and have some left over for things you want like cars or entertainment, it can make it difficult to get a mortgage to buy a home. Yes, you can get a mortgage as a freelancer, there are just more hoops to jump through.

What to Provide Lenders 

When you are going for a mortgage, you will have to provide a few things to potential lenders to ensure that they can trust that you can pay back the loan over time. They will look at your monthly income and since you won't have any pay stubs to show them you will need to show them your monthly income before taxes via other means.

You can ask your clients to issue you a 1099-MISC – the same form you use to file your taxes with or provide your tax return. You will need to show your monthly debts or bills you need to pay and expense records. You will also need to provide your proof of assets such as a car that you own.

Prove Stability in Finances

In order to qualify for a mortgage, you will need to prove your monthly income is stable. As a freelancer, you know it fluctuates but usually if you are successful at gaining new clients and retaining long-term clients, you will typically have a certain level of income each month.

You can show them how you are active at finding new clients and if possible, get references from repeat clients you have had for a while. Your bank records can prove that you are paid each month by certain clients and that you have a secure amount of funds at the ready.

Along the same lines, you should prove the stability of your business or work. You will need to explain why you can still afford a home while not working a full-time job at a recognized company. If you work less than a normal work week, then prove that you earn at least as much as a person who does, or even more than them.

Larger Down Payment

While a higher down payment is a good idea for any home buyer seeking a mortgage, it is almost essential to those who are freelancers. If possible, it is a good idea to save enough of a down payment to avoid needing to get private mortgage insurance. The bigger the down payment you are able to save, the smaller the loan you will need for your mortgage and the more likely a lender will approve you for a loan. This can also lower your interest rates.