Obtaining a mortgage can be challenging, especially if you have a non-traditional income. However, many lenders in Oklahoma are open to helping potential homeowners secure financing, even if their income comes from less common sources like freelancing, gig work, or rental income. If you're looking to get pre-approved for a mortgage with a non-traditional income in Oklahoma, follow these steps:

1. Understand What Constitutes Non-Traditional Income

Non-traditional income refers to any earnings that do not come from a typical salaried job. This can include freelance work, self-employment, bonuses, commissions, social security, retirement income, alimony, and investment earnings. Understanding the type of income you have will help you choose the right lender who is comfortable working with alternative income sources.

2. Gather Essential Documentation

When applying for a mortgage with non-traditional income, compiling the necessary documentation is crucial. Here’s what you’ll typically need:

• Tax returns for the last two years
• Profit and loss statements if self-employed
• Bank statements from the past 2-3 months
• Contracts or documentation of your freelance or gig work
• Proof of any additional income such as rental agreements

3. Improve Your Credit Score

Your credit score plays a significant role in your mortgage approval process. Lenders generally prefer a score of 620 or higher. Check your credit report for errors, pay down debt, and avoid new credit inquiries in the months leading up to your mortgage application.

4. Choose the Right Lender

Not all lenders are created equal when it comes to non-traditional income. Look for lenders specializing in non-QM (Qualified Mortgage) loans or those with flexible lending criteria. Research their requirements and fees, and consider using a mortgage broker who can connect you with multiple options.

5. Provide a Larger Down Payment

If possible, you may want to provide a larger down payment to offset the perceived risk associated with non-traditional income. A down payment of 20% or more may improve your chances of getting pre-approved, as it demonstrates your commitment and financial stability.

6. Be Prepared for a Lengthier Process

Getting pre-approved for a mortgage with non-traditional income often takes longer than with traditional income sources due to the additional documentation required. Be patient and ensure that all your paperwork is organized to expedite the process.

7. Work with an Experienced Real Estate Agent

Having a knowledgeable real estate agent who understands your unique financial situation can be invaluable. They can help you navigate the local market, identify properties, and ensure that your mortgage pre-approval aligns with your home-buying goals.

8. Stay Informed About Local Programs

Oklahoma offers various programs to assist first-time homebuyers and those with unique financial situations. Look into state-specific initiatives that provide support or grants that can be applied towards your home purchase. These programs can make it easier to secure a mortgage.

In conclusion, securing a mortgage pre-approval with a non-traditional income in Oklahoma is entirely possible with the right approach. By understanding your income type, gathering required documents, enhancing your credit score, and collaborating with the right professionals, you can take significant steps towards becoming a homeowner.