Self Employed, need advice for mortgage app?

Hello all, I have a situation that I would like to hear opinions on because I'm hearing different things from different people. I am a technical writer who has been working for/"with" the same company for 4 years. Exactly two years ago in early June 2009 I was "fired." I signed a release and some other stuff. I was then immediately "rehired" as a contractor. I'd rather not get into the legal mumbo jumbo about whether or not I am still an employee of theirs. I only included this part of the story in case it might be somehow relevant. My accountant guided me through the process of naming my business, selecting the ID code, all of that. Now, since June 2009 here's how my tax returns look: in 2009 my total self employed net profit, as reported on my schedule C, was $24,321 in 2010, my total self employed net profit, as reported on my schedule C, was $57,631 In 2011 thus far, I am on track to earn roughly the same that I did in 2010 The company 1099's me for the full amount listed under my gross receiptsSo that's my situation. My question is this: how does an underwriter take the above and determine what I am elligble for? It was suggested to me that I should wait until I file 2011's taxes, thus showing two full years of what my real self employment income is, before going for a mortgage again. Thanks for any and all replies by doughen from Kansas City, Missouri. Jun 29th 2011 Reply