Are you ready to buy?

So many people when they decide that they are ready to purchase a house, find out that the money side of things puts a spanner in the works. There are so many restrictions and changes in the lending industry, that what used to work simply doesn't any more and a borrower who in the past could qualify for $200,000 can now only qualify for $150,000. And the reasons why vary.

Obviously the borrower who is self employed may have a hard time qualifying as the attractive allowable write offs can reduce income that we can use drastically. For the schedule C borrower We have to use the adjusted gross and depending on the time of year will probably have to have an audited profit and loss in order to prove the income is still continuing. 2 years self employed income is pretty mandatory.

A larger not so obvious problem is the borrower who thinks they have co-signed on a car loan, but because the other individual pays the monthly payments we dont have to count the payment against them. This is not necessarily so. Our borrower may never make the payments (and can prove it), but if they show up in first position on the note/loan, we have to count the full payment against them.
More on this topic to come . . . . .