Mortgage tips for self-employed
 

Please post them if you have any interesting tips.

make sure you pay on time every month

Should read "Getting a Mortgage approved" tips for self-employed.

A great credit score(paying bills/cc/loans on time) is one thing.

Don't get caught lying.

If living in the US, really consider getting paid by check. Lots of check stubs can help show a steady weekly supply of income. Example being a merged CCbill account. Does not lead to nor mention porn. All monies lumped together and you get a check each and every week just like regular employed people.

Option 2 would be to incorporate and then put yourself on a payroll, withholding taxes and all the fun stuff. Then in essence your another working stiff.

Or instead of checks.. Get paid via wires. So that you can show them your bank statements for several months and show them that YES my pay does fluctuate BUT I DO make $8K a month from RKNetMedia, $2K from First Management, etc... So while the pay might be:

$2,188
$1,945
$2,220

It is always averaged to a certain amount.

That helped me big time in proving my increasing income to get a car since my last years taxes don't look anything like the new years, which don't look anything like the next years because my income is always doubling or quadrupling year to year.

I could round robin a few accounts at seperate banks and make it look like my average incoming balance is in the xx,xxx figure each month though.

my tip is to never tell them you are self employed..
tell them you work for me...and for 500.00 i will verify it when they phone me..

can u provide fake payroll stubs :1orglaugh

interesting tax saving tips.............:winkwink:

whops double post........

make sure you have enough funds before your due, else you'll end up with charges

ALL of you are wrong, the only thing they go by is your yearly FILED taxes and your credit score, nothing else matters as all that can be falsified, so it's all about your tax returns. Of course that is not including a very hi interrest NO Doc type of loan, but thats a different subject.:2 cents::2 cents:

Thanks for the info guys.

Called a mortgage co that does business with multiple banks to verify my options and they told me I would need 2 years of FILED taxes as self-employed. Also think you need to put 10% down rather than 5% when you have a regular job(I'm in Canada).

That being said, I think that being incorporated and pay rolling yourself is a pretty good idea, so you can say that you have a permanent, regular job giving you a fixed amount of money every month for example.

I just bought a house in July.

Build your credit up with the usual loans and credit cards to show you have and can make consistent payments on time. Always make large payments on your CC if you can. Building your credit score is very important.

Yes you need to have your taxes filed each year and have them paid. They'll likely want a statement of account from Rev Canada.

Wires into your bank account is a good idea as it shows consistent income/payments. Any type of deposits are good as long as they are consistent and larger depending on how much you're looking to spend on a house.

Downpayment of course is big. I put 25% down so that makes a difference and it was my second house not my first.

I just got a no doc loan at 5.5%. Credit score and tax returns was all they wanted. oh and 0 down. Even had the seller pay closing cost.

It's all about the tax returns for proving income. The rest is your credit score.

G-rotica, isn't a tax return a "document"?

Ok, you got me there. :) I guess it's a low doc loan then.

I think if you are self employed and want to put less than 20% down they really throw the fucks to you.

i didnt show one tax return when i got my mortgage and ive been self employed for 9 years

I however did need to show them 2 years worth of bank statements with x amount of $$ avg deposits per month over those 2 years

plus they wanted to see my inc and dba papers.

i dont know about canada but i did a 10% down here in fla