12-27-2012 01:28 AM
Hello, I am fiarly new to this form and if possible would like some adivice as to what I should do for you the experts.
I am a self employed General Contractor, I own my own business, I am filing income tax this year for alow 90000 with no deduction(except the ones everybody gets which I think amounts to about 16k), so after starting it on turbo tax I will have to pay 26k in taxes(I am ok with that) my question is, is I havent filed in about 3 years due to the economy and being out of work, and in the past when I did file I had alot of deduction..... so When I file this year for 90k and next year for 90k will I qualify for a mortage.
I am looking to purchage a 500k-600k house if at all possible, or if not I will look in the 350.00-400k range. Based on your experience do you think I will qualify for this amount of mortage and btw I am a first time home buyer (own another home but never obtained a mortgage)
My plan is to take a home equity out on my office(other home) to come up with the down payment on my home.
Do you have any suggestions when I file my income tax?
Also my credit is a 680transunion, and substantially lower on the other two(80+ inquires) hoping they will fall off by the time I buy my house.
Chase Freedom 4k/4k
Chase BP 1700/1650
barclay apple fiancing 1k/950
Merrick Bank 1k/1k
Capital One No Hassle Rewards 500/500
Capital One Platinum 500/500
Credit One Bank 300/200
Target Red Card 200/0
Orchard Bank 400/400
Installment Loan 5k/ 205.00 a month
(credit line, utilization)
I have VERRY HIGH utilization now because of christmas shopping etc, and took the loan out to come up with the additional money to buy my son a Rolex for his hs graduation
Anyfeedback will help,
12-27-2012 01:55 AM - edited 12-27-2012 01:56 AM
Even if no tax was owed, you still will need to file for previous years. I'd do that now.
When your lender looks at your income, they'll look at your net income only on your Sch. C (assuming you are a 1099er vs. paying yourself a paycheck) instead of factoring in the gross. Be careful of how you file. Your lender will also look at the prev. year at least.
Not sure on the DTI. Seems like it could be too high on the $500k range.
Pay off the balances ASAP.
ETA...I'd delay the car purchase until after the mortgage closing.
12-27-2012 02:10 AM
thanks so do I need quarterly profit and loss statements?
I'm a biz owner as well and applied for and received a loan 12/2010 and 1/2011 respectively. My lender asked for a current balance sheet and P&L annual statements for the prev. 2 years (2009 and 2010) and asked for an estimated P&L for 2011. I had shown a large loss for 2009 on my Sch. C but large gains for 2010 and they wanted a forecast of where things were going with an explanation of the turnaround.
12-27-2012 02:12 AM
also why should i delay the car purchase?
The main reason is that it'll cut into your DTI if you finance the car and that'll for sure lower your purchasing power. Depending on when you buy, your FICO score could still see some damage when you apply for the mortgage. IME, new accounts dinged me for up to a year.
12-28-2012 05:34 AM
12-30-2012 03:21 AM
Thanks For the Reply,
I was planing to put approx. 20% down, what would you recomend, I will have all my cc's paid off definately by march when I purchase a new vehical, but anothet question, making 90k a year, and financing a car @610/month what do you think they would approve me on for a mortgage?
12-30-2012 09:07 AM
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.