It's That Time of Year Again!!

By
Mortgage and Lending NMLS #1135039

It is that time of year when many potential home buyers will be bringing their tax papers to their Accountant to have their taxes prepared. If you have a self-employed borrower, now is the time to remind them that mortgage approval is largely based on verifiable income.

A recent borrower was in my office and stated “it is obvious that I make more than $18,000 per year, I have four children, two cars, a few credit cards and rent of $1200 per month”. It was my job to tell him, “that may be the case but your tax returns indicate you make $18,000 and there are a few things I can add back in, but I cannot use more than I can verify”. He was totally flabbergasted.

A few days later I had a meeting where a CPA was present so I asked him, “how do you prepare your self-employed clients for a home purchase”. He responded that he asks every client what their intentions are for the upcoming years in terms of purchases. It is my guess that he has very happy clients!

Comments (2)

Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
Retired New Hampshire Home Stager

Nothing like a shot of reality smack in the face when preparing to purchase a new home!

Jan 26, 2016 01:40 AM
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Nancy. Hopefully we have an opportunity to coach self employer prospective buyers before they do their tax returns. So often there is no thinking about a future purchase and what the income needs will need to look like.

Jan 29, 2016 08:21 PM