Loan modification is starting to be a very common way for home owners to stay in their houses by renegotiating the terms of the loan with you bank. Nevertheless, prior to getting the approval, you need to show that you can pay the modified mortgage with your current income.

If you are self-employed, it could be difficult to demonstrate your income when presenting it to the lender. This may be so for many different circumstances. Nevertheless, lenders must have a kind of proof that you will be able to pay back the loan.

To solve this problem, you could request your accountant for a financial statement. The financial statement needs to be for the last six months. It is fundamental that the financial statement is completed by your accountant since it will have credibility to the statement.

After you get the final amount from your accountant, you consider the number as a normal paycheck. You should plug in that number to calculate the debt-to-income ratio which is the critical factor to determine if the loan modification will be obtained.

By using this value, you discount the weight of employees, leases, etc. Just the basic amount reflecting your present earnings is shown in the financial statement.

After you have completed this step, submit this value to the bank. The value will not be audited or reviewed. The bank can use it as documentation as long as it is given by an accountant.

This is generally all the proof lenders require. Banks will use this document as demonstration of income when the individual has a business. Because lenders are willing to use this statement as proof of income, they must ensure that this letter comes from a certified accountant.

Keep in mind that lenders expect to obtain some type of demonstration of income prior to offering the loan modification. By giving the lender with the financial document prepared by your certified accountant, banks will get the proof they require to give you the mortgage modification.