Since the market turndown and all of the bank bailouts, everyone has heard about how much harder it is to get a mortgage loan. For the most part, things have gone back to how they were prior to the early/mid 2000's as far as having to qualify and show the bank that you can afford the home. Underwriters are scrutinizing the loans like never before, and you have to make sure you have written justifications for EVERYTHING including the random odd bank deposit, any additional income outside of your standard hourly rate, any discrepancies in your credit report, and many more items.
The most difficult financing to get now is for those who are self-employed. I'm not a mortgage lender, but this article gives you some good information about what you may face when trying to get a loan as a self-employed person. The author, David Rahn, also goes into the Dodd-Frank Act and that banks MUST verify income now which means there is no such thing as a "stated income" loan anymore either; you can only use your adjusted gross income to qualify - that is the income AFTER all of your deductions as a self-employed person!
http://edgewater.patch.com/articles/changes-in-mortgage-law-mean-scrutiny-over-tax-returns
Fair or not fair (I say not fair!), this is what we as self-employed people are facing now. If you would like to see how much of a loan you will qualify for, let me know and we'll refer you to a good local lender who can take all of your individual information and find out what the best loan for you is. Even if you are not looking to make a move at this point but are considering doing so in the next year or two, you may want to meet with a mortgage lender now so that they can let you know what you can do now while you are planning, in order to qualify for the best loan program for the type of home you'd like to live in. Now more than ever before, you need to do your homework and prepare so you can get what you want!
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