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Self Employed Applying For a Prime Loan

These will probably be your steps or required approach to the loan application.

A. "Stated-income" loans: RIP

"Stated-income," or "the easy qualifier," loans are very hard to find. In the recent years, lenders approved based on strength of the buyers' down payment and credit history (fico score). Lenders did not verify tax returns. Due to the increase in interest rates coupled with the subprime fiasco, even A+ borrowers are now encountering closer scrutiny. Don't be surprised if your buyer applies for a "stated-income" loan and the lender comes back requesting tax returns and complete documentation. These fully documented loans, where the lender carefully scrutinizes the borrower's credit and fully documents the borrower's income, are the new gold standard for making loans. Both mortgage agents and new clients have to work with with newly placed tough underwriting standards. The end result is, either more mortgage clients will qualify or fail to get the new mortgage loan via "Self Employed Applying For a Prime Loan"

2. Tax returns are no longer an option for the self-employed

When mortgage lenders work on fully documented loans, they thoroughly examine the borrowers' tax return. This is primarily true for anyone who is "self-employed". One of the Self-employed problem is that they are very sharp with tax-return deductions. These deductions lower their net income, as a result..... don't qualify.

Hipotecas Prestamos July 13, 2007 09:38 AM | Proceso de Prestamos | La Compra de Una Casa | Comprar Casas Embargadas

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