Proof of Income: A Freelance Problem Quote
13th August 2009 at 4am 2 Comments Tweet a link to this on Twitter ↩
“If you’re renting an apartment or buying a new home, you’ll probably be asked to provide proof of your income. In some cases, the same goes when starting a new service or opening a line of credit. Freelancers can’t exactly present a pay stub, though, making what should be routine paperwork much harder.”
Proof of Income: A Freelance Problem the latest FreelanceSwitch article discusses a rare problem that I’ve only stumbled into once myself but is something that new freelancers should certainly be aware of. Proving your income can be a mighty tricky task.
When renting my apartment several years ago as an alternative option my realtor asked for a Bankers Reference which is essentially a letter from your bank to the realtor that confirms your accounts are in a healthy well-maintained state (code for in credit I’m sure) and whether you can afford to take on the financial commitment. That said, this type of situation is likely to crop up again in the future so the alternative options FreelanceSwitch list are worthy of noting down.
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It’s also worth noting that it’s very difficult to get a mortgage (from a high-street provider in the UK) without at least 2-3 year’s proof of income – although it depends on the individual institution as to what they require.