“I’m Self-Employed; I’ll need a Mortgage in the Future”
There are a number reasons some folks have difficulty getting a mortgage. Credit challenges are right up there, too much debt to be able to qualify especially when there are student loans, even the other extreme of too little or no credit and self-employed individuals.
We are in the 4th quarter of 2015, the time that decisions need to be made as to what the tax returns are going to look like and time to address future borrowing needs. Most everyone that files a tax return wants to pay the least amount of taxes possible that is for sure. But there is a tradeoff when it comes to the need to borrow money.
So many self-employed folks I speak with have difficulty understanding the problem. They constantly say how they bring in an abundance of income but that’s not the problem. I will immediately ask, “What was the net that you actually paid taxes on?” That is the number that we need to go by and along with it, an item or two we can add to that income.
I coach clients all the time to make sure the numbers look right and to make sure they can qualify for the mortgage that will be needed. There is going to be a tradeoff, show little income and not qualify for a mortgage or qualify for much higher interest rate where the net income doesn’t matter.
This quarter is the right time to work with a knowledgeable mortgage lender to make sure the income numbers will work for the mortgage that will be needed in the future.
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Joe Petrowsky, NMLS #6869
Right Trac Financial Group, Inc. NMLS #2709
110 Main St.
Manchester, Ct. 06042
Office: 860 647-7701 x116
Fax: 860 647-8940
Cell: 860 836-9294
Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.
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