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Important Mortgage Warning For Self Employed Individuals
As a Mortgage Loan Originator, I deal with folks of all different income brackets and lifestyles. Yes, some of us remember the old TV show, "Lifestyles of the Rich and Famous" where people made big incomes and lived in big houses and drove fancy cars. But getting a mortgage is a whole different ball game. Appearances alone aren't enough.
For people with higher incomes, they commonly use their income in ways that can be deducted or "written off" on their annual Income Tax forms. As a result, their tax burden is lower and they get to keep more of their money in hand. Sounds like a great plan, doesn't it ? In most cases, the answer would be yes but in the world of mortgages, that might not be a good thing.
I get a call from a potential client. They say their monthly income is around ten thousand dollars a month and they want to purchase a new home. I'm thinking that shouldn't be difficult with a six figure annual income. So I get the necessary information from the client in order to preapprove them.
OK, confirm the employment as a consultant. Makes ... more
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