Home buyers come up a little short when they pre-qualify?
Do you ever find that sometimes your most enthusiastic buyers sometimes come up short when it comes to qualifying for a mortgage?
When I was a Realtor I found that to be true, and as a lender I come across similar challenges all the time.
I do feel it’s important to determine if they are just not ready, or if traditional underwriting just doesn’t fit for them. Do they have the income? Do they have the cash to not only make the down payment & closing costs, but afford all the other things that come with owning a home? Ultimately the choice is up to them, of course, but I like to be able to point out their best option.
Whether move- up for first timers, self-employed borrowers often present a challenge. One of the advantages of being self-employed is writing off business expenses, and that means paying less in taxes. Who doesn’t want that? But paying less in taxes may mean challenges in qualifying. How do you avoid them? You talk to a mortgage pro who has been around the block a few times, and then talk to you accountant and see if you may be able to structure your returns so that you can qualify, hopefully without paying more in taxes.
I am known for finding ways of putting people that fall a little bit outside of traditional guidelines into loans that make sense. I believe that those who have stepped out and taken the risk to start their own businesses deserve every opportunity to own & finance a home. I believe in making good loans to good people, and sometimes getting a little creative, and I’ve worked with hundreds of business owners over the past 20 years.
I’m sure occasionally, you will come across someone you can’t help that you feel is deserving. I can’t help everyone, but the only way to know is to get the info and see what we can do.
Leo Linn