Hi Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi - any information you provide for self employed is helpful.  Many have obstacles because of the way they show taxable income.

Gene another excellent article. In our market with multiple offers on many homes it's so important for buyers to be pro-active and have their finanancial ducks in a row.

So how long is it taking for the 4506 then? I would think they are running on a really 1/2 crew at best. Just wondered what your thoughts were on that?

I try to administer this to all my Buyers...

I hope you are having a wonderful Wednesday, Gene....

Gene awesome advise, now in all fairness I did not want to go through challenges like this so I had Diane buy our house under her name only and after it we put it in a family trust, Endre

Anyone that is self-employed definitely has to plan things out a bit more when it comes to qualification.  It would be wise to reach out to you and strategize!

I really like the title you gave this article. We need a few smiles throughout our days. 

Gene,

Thank you for this interesting post, and I am certain many will benefit from this.  A

Gene self-employed has always been a little bit more tricky, especially when it comes to showing enough income, because of all the deductions available to them.

Hi Gene:

Thanks for some great education and advice. No doubt the current market is experiencing a number of delays, compounded by how busy it has become in many areas with purchases and refi's!

Jeff

Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi Actually working with two Buyers in this situation. Not easy!!!! Your Clients are lucky to have someone as competent as you are to assist them.

Fortunately, here in Atlanta, I am working with Rodney Mason who always figures out what to do for my Clients. All the best - Lynn

 GENE MUNDT , it is great the buyers in your area will have a reputable and knowledgeable mortgage originator to walk them thru some difficult obstacles in order to satisfy loan approval.  Way to go...

Great info, Gene. As a self-employed investor, and also working with self-employed clients, this is good to know. 

Being proactive in this case really helps things get off to a good start, I think anyway.

Good morning Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi ,

What an excellent post as always. Your information in invaluable for those self-employed. Great advice that many can count on.

Being proactive on all problems can basically cure anything, even in real estate. :)

Financing for self employed is rough.  There is a reason why they are self employed.....reduction of taxes by maximizing deductions

Having just refinanced our home in June and now going through the process of setting up a line of credit...I must say I am less than impressed with the mortgage lender I am using...which happens to be the same bank on both.

We started the process the April 28.  It took over 6 weeks to close on a refinance that did not have to be appraised. The lender had every single doc either the day of application or the same day requested.

Once closed...I had to wait a month to apply for the LoC that I had closed prior to the new mortgage being finalized. 

Now it is 6 weeks later and an appraisal was required ( my home is worth over $375,000 and our mortgage is for $135,000 with the LoC to be $90,000). That was conducted on 8-18-20.  Still waiting to hear anything from the lender.

I wanted to use my favorite mortgage lender I refer to but my wife wanted to use our bank...for ease of transferring, etc.  Frustrating to say the least. 

Excellent commentary on financing a home, and refinances as well.  In many cases, buyers simply don't understand the backlog of what is going on behind the scenes.You've done a great job in explaining why there are delays for buyers!

I am also in the middle of a refinance. Started out in February with my existing lender.  Thanks to a subordinated HELOC that I want to keep in place for emergencies, that lender didn't respond.  The whole process stopped in May with no explanation from the lender  So I called to start it up again in June.  Getting nowhere, I switched to my mortgage broker for a better rate. I'll pay out of pocket fees, but at least I'm on the fast track to getting it done.  Tough time for many right now!   (No appraisal necessary, excellent FICO, and low debt, a perfect scenario for a refi!)  I'm sure you've heard it all!

Getting a mortgage at the best of times is challenging, let along when self-employed and in the current crises. Thanks for yet another well-written and informative post.