Financing in 32819>Question Details

wilder_nene, Home Buyer in Huntsville, AL

My question to you is,I'm self-employed but i how i go about purchaing a home

Asked by wilder_nene, Huntsville, AL Mon Nov 12, 2012

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Great to hear from a fellow Alabamian! I too am from Alabama, but moved to Orlando 12 years ago!
As a Reator we are also self employed, and if I were going to purchase a home I would get with a good lender. We have several we could recommend that could tell you what is required. Typically you would provide 2 years of tax returns showing income, along with a good credit history......if you have that it should not be a problem!
We are the #1 Century 21 Team in North and Central Florida and also work in the #1 C21 office! I work mainly in the Disney area covering neighborhoods like Celebration, Windermere. Lake Nona, Winter Garden and Dr Phillips.
If you would like me to send you a few lenders let me know!
1 vote Thank Flag Link Mon Nov 12, 2012
Hi Wilder_nene

That is a very good question so you can make preparations to make a purchase. Your very first step, an absolute MUST, is to speak with a mortgage broker to see where you stand financially. Being self employed and proving your income is more complex than purchasing as W-2 borrower. You will need to provide the mortgage broker with 2yrs worth of Tax Returns, 1099's and any other documentation they require to see if your income qualifies you to purchase and for how much. Once you have done this step then start your search of the area you are interested in and connect with a Realtor who will work with you to find what you are looking for.

You can find mortgage brokers on Trulia who will be more than happy to discuss your finances with you. Best wishes in your home search and if you need any assistance with finding property please call me - I'd be happy to help.

Carri Schoeller ABR, e-PRO
Charles Rutenberg Realty
407-492-8559
cps@orlandorelocation.com
1 vote Thank Flag Link Mon Nov 12, 2012
For self-employed individuals, we look at your personal and business tax returns. You will qualify for a loan based on your net self-employment income (adding back certain deductions such as amortization and depreciation). We use the average of this net income for the last 2 years, so be watchful as to how much you deduct for income tax purposes as this might hurt your chances of qualifying for the home that your would like to purchase.

If you would like to discuss specifics on your ability to qualify for financing, please give me a call.
0 votes Thank Flag Link Fri Dec 14, 2012
Obtain a prequalification letter from a bank. Self employed people can obtain a loan based on how long you have been self employed. You may need to put more money down and that is something a bank can tell you. For self employed people in the past prior to 2006 I believe if you could put down at least 20% they would not verify your employment but since the recession, the requirements from the bank are strict and they need every single detail to qualify you for a loan. .
0 votes Thank Flag Link Tue Nov 27, 2012
Hello:

Nothing to worry at all. As Realtors, we are actually considered to be self employed as well. As long as you have a work history to be able to back up your income with W-9s and tax returns, being self employed is not an issue at all.


I have a very good lender who can take a look at your paper works and let us know how much loan you can qualify for,..

Let me know if you need me to forward his info to you.

Thanks,


Abraham Bidhendi - Top Producer Realtor® with over 25 years of experience
Awarded as the TOP Buyer side Transactions in the State of Florida
We have had 165 successful transactions during the past year alone.
Exit Realty Access, LLC
Direct: (407) 744-2533
Fax: (407) 444-9925
Email: REOsofflorida@msn.com Or abidhendi@ORLANDOPROPERTIESONLINE.COM
Website: http://reosofflorida.mfr.mlxchange.com/ Or http://abidhendi.orlandopropertiesonline.com
Kissimmee Office: 397 N. Main St., Kissimmee, FL 34741
Altamonte Springs Office: 660 Palm Springs Dr., Suite D, Altamonte Springs, FL 32701
0 votes Thank Flag Link Mon Nov 12, 2012
no problem. WE get you with a lender and you get pre qualified (or not ) If you get pre qualified then we go looking for a home that th elender will be happy to lend you money on. Simple. alan@frontlinefloridarealty.com
send me an e mail and I will hook you up with a lender and we can go from there
0 votes Thank Flag Link Mon Nov 12, 2012
Hello,

How long have you been self-employed? I am not a mortgage broker, but most buyers who are self-employed need to be in the same line of work for the last 2 years or have filed 2 year's worth of tax returns in the same business to be able to get pre-approved for a mortgage, amongst other things. The other major factor would be your credit score. Be prepared, I just had a self-employed buyer close on his very first home and the lender requested any and everything from him in terms of documentation. Your fastest way to getting an answer- contact a mortgage broker who can run a quick mortgage application on you and they can give you a good idea if #1 you qualify and #2 how much you qualify for. Once you get that answer, you can start looking for homes. I'd love to help =)

Linda Jokbengboon
Re/Max Town Centre
LindaJ2@remax.net
0 votes Thank Flag Link Mon Nov 12, 2012
No problem.........

You go about purchasing a home the very same way any salaried person would........you sit down and speak with a mortgage rep - they will let you know if you qualify for a loan, and how much of a loan.

. As a self-employed individual, you will have to show 2 yrs. tax returns, and the average of the 2 yrs will be used to qualify you. Of course, your credit scores will also play into the final qualification, as well and your current debt.

I hope you declare (on your taxes) what you earn!

If you have busiuness deductions (like agents do) , know that your net income, following those deductions, will be used, not your gross.

Best wishes..............speak to a loan officer and then you'll know where you stand
0 votes Thank Flag Link Mon Nov 12, 2012
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