Compare Mortgage Quotes

sk8todd · Joined: 03 Sep 2010 Posts: 1 1.53 Dollars($)

I know I could just apply at a bank, but I wanted to test the water before effecting my credit score with credit checks. I want to apply for a $300k-$350k first time home loan.

25 years old
$6300 monthly pre-tax income
731 Fico Score
$100,000 in documented liquid assets (stocks portfolio & savings) although I don't want to put it all down unless necessary as I would much rather keep it in the market while its down.

Where I see my problem is my job history/security... I am self employed. My 2009 Adjusted Gross income for tax purposes was only $9500 because of business deductions and my CPA is simply amazing. I estimate my 2010 to reflect around $20,000. My bank statements show my TRUE income of $6300 monthly. Will the banks care to look at my deposit statements reflecting my true income, or will they just factor in my 09 and 10 tax returns? Will the banks consider me for a loan with only 16 months at my current job? After I file my 2010 tax return will the bank only see that I have 2 years of tax return, even though 09 wasn't a complete year of business for me? I would love some feedback and advice. Thank you so much!

Last question which I will be asking my financial advisor at the end of this month... Would it be better to put the minimum down payment with a higher interest rate and keep my money in investments OR put 20% down with the low interest rate and have less in my portfolio to grow? That is presuming future growth in the financial market.

smithsussane · Posted: Sat Sep 04, 2010 3:02 am Post subject:

Hi sk8todd!

Welcome to forums!

The bank will look into your tax returns to know your income and financial situation. If it does not meet the criteria of the lender, then he will not be ready to give you a mortgage.

In order to get a mortgage you will have to put 20% down. If you wish, you can even put down more. It might help you in getting a low interest rate. You can pay points to get a lower interest rate on your mortgage.

Feel free to ask if you've further queries.

Sussane

Posted: Sat Sep 04, 2010 11:46 am Post subject:

thanks for your response. So does that mean that they will have no interest in looking at monthly bank statements as proof of income? As my tax returns show a pretty pathetic stated income.

jerry · Posted: Mon Sep 06, 2010 3:23 am Post subject:

Hi Guest,

The lender will look at your overall income in order to approve you for a loan. However, your tax returns are the proof of your yearly income. If your tax returns show that you don't have much income, then there are chances that you won't get the mortgage.

Thanks,

Jerry

jveenstra · Posted: Fri Sep 10, 2010 10:10 am Post subject: Self Employed

The income used for mortgage qualification for self employed is the net income averaged over the last two years. Add back depreciation as that is a paper writeoff, not an expense you paid money on.

The bank, nor anyone else, will look at you bank statement deposits to detremine any income. Bank statement mortages disappeared after the subprime mortgage mess started in August, 2007.

A couple states still have stated income mortgages for self emplyed, NJ and CT and parts of NY and parts of PA. MInimum down payment is 30%
CPA verifes self emplyed at least 24 months or longer.

Company	Loan Type	APR	Est. Pmt.
				Go
				Go
				Go
				Go
				Go
				Go

Property State:
Property Type:
Credit Rating:

All times are GMT - 7 Hours

Page 1 of 1

Compare Mortgage Quotes

Self employed for 16 months, will I qualify for a home loan?