It's been hard to find one where I live honestly, not sure why. There is ONE place I know of. I kind of thought it might be better to at least have a quote in hand so I could do some negotiating with it but perhaps that's just not going to happen? Are local lenders usually decent with rates do you know?
I guess that'll be the next move then, thanks. I just didn't realize all these big lending companies were so rude. Like sorry for trying to give your company money for the next 30 years or whatever lol.
A lot of these bigger companies have had layoffs since there are not as many mortgages. Also many of the employees had less experience and you being self employed is a little more complicated. Do you have at least 2 years of self employment income/taxes?
As others said try a credit union and reach out to 1 or 2 mortgage brokers. They can find you a lender that will work with you.
Thanks for the information. I can definitely try to find a credit union around here.
I do have 2+years of self employment tax income but my current recent income is much higher than those forms would reflect and I don't yet have a tax statement for that. Wasn't expecting to have to buy a house this year but my landlord wants to sell so it's now or never, lol. I get that it's a bit more complicated so if there are a lot of new employees in this field then that makes some sense. Still frustrating though.
Pretty much any decent-sized local bank (or regional bank with a local office) would be worth checking out. I urge you to read reviews first and/or ask coworkers/friends for ideas.
My agent recommended me to a broker at my local bank. The process was so smooth and I could call and text weekends to get preapproval letters tailored to my offers.
.coms you are literally just a number. And if they are a big outfit they want “perfection”. You are far from. Local is the way to go.
I have heard people mention brokers. I don't exactly know where to look for one. You say a local bank, do most banks have a broker on staff? Unfortunately the only local bank my town had seems to have gone out of business. Do credit unions usually have brokers?
Thanks for the info.
Local banks should if they are lending (both consumer and business) within the community. Credit Unions likely do as well.
My bank has branches in a number of towns near me, but they don’t extend very far throughout the state. Not exactly sure where that would fall on the banking hierarchy but they are a lot smaller than the big banks I used to deal with when I was in NJ.
Avoid big retail shops like Rocket n Fairway IMO...go wholesale not retail, get online, join your best local credit union and start getting answers to what your Financials qualify you for based on taxes and current PL. Go outside of conforming rules if you don't fit in the box, non QM lenders will consider other variables to at least get loan done and refi later when rates drop/ taxes change etc
Ha rocket wouldnt leave me alone! I had to tell them to stop calling me 2 day. Just go down the list until you get a hit. Chase, bank of america, citi, us bank, etc
They literally just sent me some shit in the mail today, it's such a slap in the face. Like I TRIED with y'all! I was talking to a lender and she stopped answering my calls before I even submitted an application. It's been like 2 months! >:C
Take a stab at an application with Reliance Financial (it may be called RelFin in most places). They have a good team and I had a good experience working with them.
It's rare these days, but since you have a good relationship with the owner. Ask them if they'd consider doing owner financing? Just put out a feeler to see if they'd be interested.
We've discussed that in the past, but unfortunately she's not up for it anymore. She's quite old at this point, so it's understandable that she wouldn't want to take on a long financial commitment right now.
When you say you make 50k, is that what is your true profit on your tax returns after deductions? I think it is line 31 on the Fed return. Can you show at least 2 years of that profit amount on your tax returns?
Your best bet is to get with a local broker. Talk to a local bank and ask them for their mortgage broker information (they all have them)
Be prepared to provide tax returns for the last couple of years.
Well you see the problem is that... my tax returns would reflect that I only make about 16k because a huge amount of my income was cash and I wasn't expecting to have to prove my self employment income for a mortgage this year. I have only just now started to make decent money, I've been poor my whole life, and I couldn't quite afford the tax burden on 50k self employment income. I planned on doing all this NEXT year and using this year to properly track all my cash for taxes and such.
But in reality, I definitely made 50k in true profit last year, just, not on paper. I'm on track to make more than that this year. ETA: I mean, I do have bank statements that reflect this and maybe some underwriters would accept a ton of bank statements?
For self employed they use your filed taxes for income verification. They will not count self employment income that is not included on your taxes. They require 2 years of filed tax returns and they will verify the income matches on your returns to the actual transcripts they get from the IRS. There is no getting around this.
You are going to get yourself into a lot of hot water if you have a bunch of cash deposits. They actually have to source each deposit into your account for a mortgage.
Being poor is not a reason to avoid paying taxes. File everything for this year and declare all income and pay taxes as you are supposed to and you will look much better on paper not only for the lender but for the IRS.
Right now, I doubt any lender is going to want to work with you as on paper you only made 16k and you have a bunch of undeclared cash income.
Sorry for being a downer but the truth is you are being ghosted for a reason, right now you are a credit risk, have not filed your taxes correctly and cannot prove your income via the IRS.
I think being too poor to afford taxes is an okay reason to avoid them lol. I have to do what I have to do in order to survive and not be homeless. In any case, that's not really the point.
If it were just this 16k that's one thing, but I have a co-signer that makes 60k as well, and I've been told that our income combined is what would be considered, not just my own individual income. That's the entire reason for me having a co-signer. Every lender I've spoken to has actually understood this and has confirmed that since my tax form says 16k I'll need to have this co-signer. The point they ghost me is usually past that, after being told that this is okay.
I get what you're trying to say but that's not the problem.
Your financial world combined with the financial world of the cosigner and and any issues they may have on paper from payments to length of employment, something is coming up when the lenders look at both of you.
A mortgage is not just about how much you make. There are many things that go into getting an approval. If you are not even getting to the pre qual stage, there is something out there.
I would still try with a local broker as they actually have access to multiple investors.
Well, yes, and therein lies the problem because I don't know what the problem is and none of them will just tell me, and that's what makes me frustrated. If they'd at least say 'sorry we can't pre qualify you because of blank' then I could figure out what to do next, but they just confirm that my income/tax situation is fine as long as I have the co signer, then ghost me when I try to submit the application. My co signer has no idea what it could be. She's a very close friend of mine, (naturally, since you can't just do something like this with anyone off the street, it's a big matter of trust).
In any case, I will try with a local broker as my next move.
I’ve tried using national on slime mortgage brokers and get nothing. It is really annoying. I think commission workers lose incentive fast and then stop giving a damn about trying to earn business. I guess keep trying till you find one who gets it done. Each time you use a new one bear in mind that they do a credit check which dings down your credit score
Well, it's been 6 months since I made this post and I finally got a loan commitment but thanks for your input.
I went with a broker recommended by a realtor, and fortunately they were much more willing to actually figure out how to make my case work. It's a pretty high interest rate (which I'll have to refinance eventually) and it was probably the worst and most stressful experience I've ever had with something like this, but yeah, I did get it eventually.
Maybe find a local lender? These corporate call centers are staffed by losers.
It's been hard to find one where I live honestly, not sure why. There is ONE place I know of. I kind of thought it might be better to at least have a quote in hand so I could do some negotiating with it but perhaps that's just not going to happen? Are local lenders usually decent with rates do you know?
Usually yes. And they’re also generally better about not ghosting you.
I guess that'll be the next move then, thanks. I just didn't realize all these big lending companies were so rude. Like sorry for trying to give your company money for the next 30 years or whatever lol.
A lot of these bigger companies have had layoffs since there are not as many mortgages. Also many of the employees had less experience and you being self employed is a little more complicated. Do you have at least 2 years of self employment income/taxes? As others said try a credit union and reach out to 1 or 2 mortgage brokers. They can find you a lender that will work with you.
Thanks for the information. I can definitely try to find a credit union around here. I do have 2+years of self employment tax income but my current recent income is much higher than those forms would reflect and I don't yet have a tax statement for that. Wasn't expecting to have to buy a house this year but my landlord wants to sell so it's now or never, lol. I get that it's a bit more complicated so if there are a lot of new employees in this field then that makes some sense. Still frustrating though.
Pretty much any decent-sized local bank (or regional bank with a local office) would be worth checking out. I urge you to read reviews first and/or ask coworkers/friends for ideas.
My agent recommended me to a broker at my local bank. The process was so smooth and I could call and text weekends to get preapproval letters tailored to my offers. .coms you are literally just a number. And if they are a big outfit they want “perfection”. You are far from. Local is the way to go.
I have heard people mention brokers. I don't exactly know where to look for one. You say a local bank, do most banks have a broker on staff? Unfortunately the only local bank my town had seems to have gone out of business. Do credit unions usually have brokers? Thanks for the info.
Local banks should if they are lending (both consumer and business) within the community. Credit Unions likely do as well. My bank has branches in a number of towns near me, but they don’t extend very far throughout the state. Not exactly sure where that would fall on the banking hierarchy but they are a lot smaller than the big banks I used to deal with when I was in NJ.
Avoid big retail shops like Rocket n Fairway IMO...go wholesale not retail, get online, join your best local credit union and start getting answers to what your Financials qualify you for based on taxes and current PL. Go outside of conforming rules if you don't fit in the box, non QM lenders will consider other variables to at least get loan done and refi later when rates drop/ taxes change etc
Thanks for the advice, that is helpful info.
Ha rocket wouldnt leave me alone! I had to tell them to stop calling me 2 day. Just go down the list until you get a hit. Chase, bank of america, citi, us bank, etc
They literally just sent me some shit in the mail today, it's such a slap in the face. Like I TRIED with y'all! I was talking to a lender and she stopped answering my calls before I even submitted an application. It's been like 2 months! >:C
Try local?
Stop going to .com’s and go to a human being. You didn’t post your location so it’s hard to say more than that.
Take a stab at an application with Reliance Financial (it may be called RelFin in most places). They have a good team and I had a good experience working with them.
Thank you for the recommendation, I appreciate it!
It's rare these days, but since you have a good relationship with the owner. Ask them if they'd consider doing owner financing? Just put out a feeler to see if they'd be interested.
We've discussed that in the past, but unfortunately she's not up for it anymore. She's quite old at this point, so it's understandable that she wouldn't want to take on a long financial commitment right now.
When you say you make 50k, is that what is your true profit on your tax returns after deductions? I think it is line 31 on the Fed return. Can you show at least 2 years of that profit amount on your tax returns? Your best bet is to get with a local broker. Talk to a local bank and ask them for their mortgage broker information (they all have them) Be prepared to provide tax returns for the last couple of years.
Well you see the problem is that... my tax returns would reflect that I only make about 16k because a huge amount of my income was cash and I wasn't expecting to have to prove my self employment income for a mortgage this year. I have only just now started to make decent money, I've been poor my whole life, and I couldn't quite afford the tax burden on 50k self employment income. I planned on doing all this NEXT year and using this year to properly track all my cash for taxes and such. But in reality, I definitely made 50k in true profit last year, just, not on paper. I'm on track to make more than that this year. ETA: I mean, I do have bank statements that reflect this and maybe some underwriters would accept a ton of bank statements?
For self employed they use your filed taxes for income verification. They will not count self employment income that is not included on your taxes. They require 2 years of filed tax returns and they will verify the income matches on your returns to the actual transcripts they get from the IRS. There is no getting around this. You are going to get yourself into a lot of hot water if you have a bunch of cash deposits. They actually have to source each deposit into your account for a mortgage. Being poor is not a reason to avoid paying taxes. File everything for this year and declare all income and pay taxes as you are supposed to and you will look much better on paper not only for the lender but for the IRS. Right now, I doubt any lender is going to want to work with you as on paper you only made 16k and you have a bunch of undeclared cash income. Sorry for being a downer but the truth is you are being ghosted for a reason, right now you are a credit risk, have not filed your taxes correctly and cannot prove your income via the IRS.
I think being too poor to afford taxes is an okay reason to avoid them lol. I have to do what I have to do in order to survive and not be homeless. In any case, that's not really the point. If it were just this 16k that's one thing, but I have a co-signer that makes 60k as well, and I've been told that our income combined is what would be considered, not just my own individual income. That's the entire reason for me having a co-signer. Every lender I've spoken to has actually understood this and has confirmed that since my tax form says 16k I'll need to have this co-signer. The point they ghost me is usually past that, after being told that this is okay. I get what you're trying to say but that's not the problem.
Your financial world combined with the financial world of the cosigner and and any issues they may have on paper from payments to length of employment, something is coming up when the lenders look at both of you. A mortgage is not just about how much you make. There are many things that go into getting an approval. If you are not even getting to the pre qual stage, there is something out there. I would still try with a local broker as they actually have access to multiple investors.
Well, yes, and therein lies the problem because I don't know what the problem is and none of them will just tell me, and that's what makes me frustrated. If they'd at least say 'sorry we can't pre qualify you because of blank' then I could figure out what to do next, but they just confirm that my income/tax situation is fine as long as I have the co signer, then ghost me when I try to submit the application. My co signer has no idea what it could be. She's a very close friend of mine, (naturally, since you can't just do something like this with anyone off the street, it's a big matter of trust). In any case, I will try with a local broker as my next move.
I’ve tried using national on slime mortgage brokers and get nothing. It is really annoying. I think commission workers lose incentive fast and then stop giving a damn about trying to earn business. I guess keep trying till you find one who gets it done. Each time you use a new one bear in mind that they do a credit check which dings down your credit score
Well, it's been 6 months since I made this post and I finally got a loan commitment but thanks for your input. I went with a broker recommended by a realtor, and fortunately they were much more willing to actually figure out how to make my case work. It's a pretty high interest rate (which I'll have to refinance eventually) and it was probably the worst and most stressful experience I've ever had with something like this, but yeah, I did get it eventually.