How To Lower Your Mortgage Payment
- By
Julia Austin
Source: supersizer / Getty
Wait for the New Year
If it’s the end of the year, know that a lot can change when the year turns over. If you have your own business or work freelance, know that most lenders calculate your income by averaging your last two years of tax returns. Today, a lender would look at 2019’s and 2018’s tax returns. Come January 1 (or whenever you complete your taxes), you can show 2019’s and 2020’s. If you had a great year, that could improve your income on paper for the lender, which could improve your debt-to-income ratio, and might make them comfortable giving you a loan. If you got married this year and will be filing taxes jointly, some of your partner’s assets and information could also play a role in your mortgage application.
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