This topic contains 8 replies, has 7 voices, and was last updated by Anonymous 8 years, 6 months ago.
- May 5, 2011 at 6:59 am #203564
do banks look for? Do they see how much you made in the year or how much you made after all the expenses?
- May 6, 2011 at 8:46 am #260351
If your self employed you are put in a high risk pool. Your income and the stability of it will be scrutinized. More than likely you will need at least 25% down before a bank will touch you.
The bank cares about what is left over after you pay your expenses. They will not look to see if you are an efficient manager, just that you have a sufficient track record and verifiable income. You can hide a lot of cash but they will not acknowledge money they can’t trace.
Also, you are the business… If something happens to you, the business fails and you lose your income stream. They may want an insurance rider on you to the amount of the mortgage.
- May 6, 2011 at 12:04 pm #261029
Banks look at the assets you own. In your case a small business. They will look at the total revenue you have made for that year. They will also look at the value of the home you decide to buy. Based on all this they will give you a loan against it.
- May 7, 2011 at 12:04 am #265451
good credit, they also look at your gdp, and how much money ur business makes overall
- May 8, 2011 at 11:20 pm #268549
12-24 month of bank statements and tax returns. They do a credit rating check
- May 10, 2011 at 11:02 pm #271066
I used to work for a mortgage company as an underwriter, what Cigma has told you is correct.
- May 16, 2011 at 6:00 am #428146
If you trust your banker or mortgage lender, they would have the most complete data. Make an appointment to discuss your options and bring all your salary, credit card debt, and loan amounts. With the mortgage software, it only takes a few minutes to input your data. This way you will get an accurate estimate of what you can afford in monthly payments for a mortgage.
- May 16, 2011 at 6:35 am #428147
It is a mystery to me where anyone with 40K year salary can buy a house. Where do you live, in Idaho?
- May 16, 2011 at 7:31 am #428148
Most lenders require the deferred student loan payments to be included in their debt ratios. However, I had a lender recently that asked for documentation of deferrment for atleast three years and we were able to get around that.
The My Community is the best program out there right now for 1st time homebuyers, in my opinion. A lender can only average your bonuses for the last two years, so they are not helping much with your debt ratios, they cannot go off of a projected amount for this year.
Shoot me an email if you have any more questions or obtaining financing in Florida! [email protected]
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