First time Mortgage Self Employed

Anonymous · ‎08-16-2020

Hello everyone, I've been on and off here reading up and trying to build my credit for a while.

I'm hoping to finally apply for a mortgage loan again after being denied a couple of years ago.

Mortgage scores are currently 773, 769 and 794 and I'm expecting them to go up a bit more as I just paid off a bit more on one of my CC's.

My overall utilization is only at about 3 percent right now so that should also drop even a bit more. Once two of my other cards I paid off report towards the end of the month I will have my cards AZEO.

The only other debt I have is a $265 auto loan and a $190 child support payment per month.

My main concern is that I am self employed and as most self employed I have a pretty good amount of write offs that bring my adjusted gross income down to around only 30k a year.

I have 2 yrs tax returns as proof of income

I'm looking for about 90-100k loan.

I'm aiming to speak with a loan officer in the next couple of weeks. Is there anything else I should try and do/prep before speaking with them to better my chances of approval? I was just really discouraged the first time around after getting denied. My scores weren't horrible at the time but not too great either. I believe in the 650-670 range if I remember right, I also had like 3 or 4 collection accounts from old medicals on my report at the time (all gone now 😁) as well as having even more deductions on my tax returns. I'm hoping I have brought my scores up enough and reduced my amount of deductions enough to qualify for the amount I'm seeking 😬🤞

Anonymous · ‎08-17-2020

Following. I'm in a similar situation.

NC_Mtg_Loaner · ‎08-18-2020

How much money do you have for down payment and closing costs?

Do you have any money for reserves?

While they may not be required, you certainly want to have some money set aside for the "unknown".

DTI appears fine as long as your S/E income shows that stability over the last couple years along with YTD.

__________________________________________________

Licensed NC, SC and VA Mortgage Loan Originator

Anonymous · ‎08-18-2020

Thank you for your reply! I have about 5k set aside. I dont really know what to expect as far as down payment/closing. I was hoping to look into 0 down but I have also read that being self employed and having money to put down helps odds of approval

Anonymous · ‎09-01-2020

I am actually going through the mortgage process right now and am in the underwriting stage and beyond stressed out. My husband and I are both self employed. You will likely need more money than the 5k. They like to see a few months of mortgage reserved in your account after down payment and closing costs.

Your debt to income ratio is a big plus and as long as you have proof of every single dollar that comes in, you should be fine. I think we've given two trees worth of paperwork in the last fews weeks. The guidelines recently changed for self employed getting a mortgage and they ask for a ton of information. I would definitely reach out to a loan officer and talk about your situation so they can give you a little more guidance on what you'll need but seems you're in a good spot. Just save up a little more money. Keep in mind, you'll have to pay for appraisal, inspection etc during the process as well. Good luck and keep us posted!

@Anonymous wrote:
Thank you for your reply! I have about 5k set aside. I dont really know what to expect as far as down payment/closing. I was hoping to look into 0 down but I have also read that being self employed and having money to put down helps odds of approval

Anonymous · ‎09-05-2020

Thanks for your reply! I have yet to speak with a loan officer but most of what you mentioned is right in line with everything I have been reading online... l was hoping to get the process going before having to file my taxes for 2020 but it's looking like I may end up having to wait a bit longer while I do some more saving. Not sure just yet