Been turned down 4 times? Don’t give up…

When you REALLY want something so bad you can TASTE IT, sometimes you just have to keep at it until it gets done. Even when it’s not easy. Can you relate? We recently had a borrower who came to us feeling a little beat up. He had been turned down for a mortgage loan not once, or twice, or three times. Yes… he had been turned down by 4 other lenders. But he REALLY wanted this house for his family! So he stuck it out. He found us.

Self Employed Borrowers Have It Rough

Self employed business owners are the backbone of America. But when it comes time to borrower money, mortgage lenders often treat them like they’ve got some sort of contagious disease… We’ll never understand why. Maybe it’s because they’ve got a lot of paperwork. Maybe it’s because they’ve got a lot of obligations and responsibilities? Sure, it’s complicated. But so what? We’re mortgage lending PROFESSIONALS, right? This particular borrower had the misfortune of finding 4 lenders in a row that just couldn’t figure out how to calculate his income. And these weren’t some fly by night lenders either. It was 2 big local banks and 2 other local lenders (who shall all remain nameless for this story). 

Self Employed Happy Endings

The good news is, our clients found US! They had good credit. They had saved some money for a down payment. They even had reserves. What they were missing was a lending team that REALLY UNDERSTANDS self employed borrowers and how to calculate income. Got amortization? No problem.  Got depreciation? We can handle that. Got mileage? Bring it on. We are SO happy to help people achieve their dreams of home ownership, even when it’s not easy. After all, we believe that hard work can take you anywhere you want to go, but sometimes you just need a little help.

Navigating Mortgage Applications for the Self-Employed

Hey future homeowners! If you’re self-employed, getting a mortgage might seem a bit tricky, but we’re here to guide you through it. Get ready to dive into a success story and learn all the secrets to securing that loan!

The Issue Self-Employed Folks Face

While being your own boss is super cool, it can bring some hurdles when getting a mortgage. But guess what? There are lenders who totally get it and are ready to help you. Let’s learn from someone who didn’t give up even after facing a few rejections!

Meet the Determined Borrower

Picture a self-employed person with great credit history and enough savings for a down payment. The only missing puzzle piece was finding a lender who understood the unique financial setup of self-employed people.

Finding Your Perfect Match in a Lender

Our hero found a lender (us!) who knows all about the world of self-employment. We’re here to decode complex terms like amortization and depreciation for you, helping turn your home ownership dream into reality.

Tips and Tricks for Self-Employed Borrowers

Now, onto some golden advice for your mortgage journey:

1. Keep Your Financial Info Handy:

   – Save all your income proofs and tax details in one place.

2. Boost Your Credit Score:

   – Regular bill payments and less debt can be your friends here.

3. Start Saving for the Down Payment:

   – A good savings pot can fetch you better loan terms.

4. Find a Lender Who Gets You:

   – Scout for lenders who specialize in helping self-employed folks like you.

Your Step-by-Step Guide to Qualifying for a Mortgage

Ready to crack the mortgage qualification code? Follow these simple steps:

1. Get Your Credit Score in Shape:

   – Check for any errors in your credit report and aim for a good score.

2. Know Your Finances Well:

   – Have a clear idea of your income and expenses.

3. Save Enough for a Down Payment:

   – Research and find the right loan program for you.

4. Show a Stable Work History:

   – Lenders prefer consistency; so, stick to your current job while applying.

5. Manage Your Debts Smartly:

   – Avoid new debts and pay down the high-interest ones.

6. Build a Safety Net:

   – Keep some funds aside for the future.

7. Gather All Necessary Documents:

   – Be prepared with all your financial statements.

8. Stick to Your Budget:

   – Know how much you can comfortably spend on your new home.

9. Shop Around for Lenders:

   – Don’t settle for the first offer; explore and compare.

10. Get Preapproved:

    – This shows sellers you are serious and ready to buy.

11. Know the Loan Programs:

    – Learn about different mortgage programs to find the one that suits you.

12. Fix Credit Issues:

    – Sort out any negative items in your credit report before applying.

13. Seek Guidance from Mortgage Pros:

    – A mortgage expert can guide you through the tricky parts.

14. Avoid Big Financial Changes:

    – Keep your financial situation stable during the application process.

15. Be Honest in Your Application:

    – Always provide true and accurate details.

16. Be Ready for Underwriting:

    – Respond promptly to any requests from underwriters for additional info. And voila! Follow this guide to boost your chances of securing the mortgage you want.

How to Calculate Your Self-Employed Income for a Mortgage

Calculating your income for a mortgage is a crucial step. Let’s break it down:

1. Gather Your Financial Records:

   – Keep tax returns from the last two years and other financial documents handy.

2. Understand Your Tax Returns:

   – Focus on the important parts of your tax returns to find out your exact income.

3. Make Profit and Loss Statements:

   – Create these statements for your business to show your income and expenses.

4. Keep Your Bank Statements Ready:

   – Your bank statements from the last 24 months will help in verifying your income.

5. Show Your Business Stability:

   – Be ready to show that your business has been stable and successful.

6. Talk to a Tax Expert:

   – If things get too complex, don’t hesitate to consult a tax professional.

7. Know Your Debt-to-Income Ratio:

   – Understanding this ratio can improve your loan eligibility.

8. Consult a Mortgage Lender:

   – Contact a lender who specializes in self-employed borrowers for personalized guidance. Phew! That’s a lot, right? But with a little patience and organized approach, you can get there. Remember, the goal is to show lenders that you have a stable income and are ready to take on a mortgage.

Securing a Mortgage: Your Self-Employed Action Plan

Hey go-getters, being self-employed doesn’t mean home ownership is out of reach! Here’s your action plan:

1. Start Early:

   – Begin your mortgage prep early to avoid last-minute hassles.

2. Stay Organized:

   – Keep all your necessary documents organized and ready

3. Seek Expert Advice:

   – A mortgage advisor can be your guiding light in this journey.

4. Be Patient:

   – The process might be a bit longer, but keep the end goal in mind. And remember, success in securing a mortgage is totally possible, even for the self-employed. So roll up those sleeves and let’s get started on this exciting journey to homeownership!