It is pretty uncommon for someone who has been self-employed for less than two full tax years to be able to get a mortgage based on those earnings. Your prior compensation doesn't mean much to a lender even if it was the same type of work. Even a shift in compensation structure say from being salaried to base + commission can be an issue when you're trying to get a loan.
They want to see that you can keep your business going in the long term because of the high failure rate and to ensure that you earn enough over the course of a year to pay given how sporadic self-generated income can be. Having two years' of data also allows them to calculate an average annual income. That's what they normally base your loan on.... more
There are hidden codes within your credit report and when run through the automated system that could trigger a risk issue. Have you looked at your credit report lately? is there any one of your several student loans that might have past due??
I'm assuming they run the loan through the FannieMae automated system. they should be calling them to help determine the issue.... more
Depends on the type of loan you have, only a certain percentage can be given back in the form of closing credits from the seller to begin with, then your mortgage may have a minimum of 3.5%, not many do 3.0%!... more
My first thought was "why are you talking with realtor about lending practices"? Realtors are licensed to represent buyers and sellers in home purchase transactions, not obtaining financing for these transactions. Plus, it's not their area of expertise.
Mortgage loan origintors must be licensed by the state where they are taking loan applications. This includes continuing education and responsibility in the transaction. Make sure you are working with a Massachusetts licensed loan officer!... more
All of the questions here are good answers I am a loan officer and Brent and Mike are absolutly correct...If you have any question in reference to your mortgage concerns please call our office at 800-695-8031... more