Self Employed Mortgage Review

After the recent real estate meltdown happened, lenders, mostly banks, copped a new attitude and made huge changes in lending policies. This makes it super hard to get a self employed mortgage. We're not saying it's impossible, just full of minefields that may have you genuflecting to the mortgage lenders whims and desires whether you like it or not. The days of lenders taking a "who cares if you don't have proper paperwork," posture has been pushed to the side of the road like a used flat tire, so if you are a self employed business owner contemplating the purchase of a home, there are several clues you should know to assuage any fears, and increase your chances exponentially. One minefield you can eliminate rather quickly is the one called "history." No, not the kind that was taught in school; we're talking about the history of your business. Today, if your business hasn't been around for at least two years, and be able to prove it, getting a self employed mortgage will be difficult, at best. Oh, sure, you can always sidestep the usual loan process by dealing with a private money lender but you certainly won't like the terms or conditions of the deal, so it's wise to eschew these lenders. Many self employed wannabes used to be able to depend on lenders offering "limited documentation paperwork," "stated-income," "bank records to prove income," or "no tax returns;" but not any longer. In 2010 and beyond, most all reputable lenders require proof that you are - who you are, and be able to prove a lengthy pattern of stability in your self employment, so they feel that you will be able to handle the money they are lending over a long period of time. There is, however, another clue that most buyers seeking a self employed mortgage may overlook or not know. If your self employment business is currently the same type you worked at when you were a W-2 employee, some lenders may give you the "green light," and not require a full two years of tax returns. This works well with a borrower who has a nice, steady credit history; also a FICO score on the north side of 720 will probably get your self employed mortgage deal done real fast. Before you start seriously looking for that perfect house in that perfect neighborhood that has mature trees, wide streets, near shopping and schools, you need to not only know your paperwork, but have it handy when making your application. Once you choose a lender, make an appointment to speak with an experienced loan person who specializes in self employment loans. Meet in person and find out what they require in terms of loan paperwork which will allow you gain knowledge, and be able to package your loan properly. And in the discussion, if you fail to qualify for one type of self employed mortgage, the lender might be able to steer you in another direction.

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