getting a mortgage when you're self employed?

[HerrStig]

Originally Posted By: tenderloin
Originally Posted By: Joshua_Skinner
Originally Posted By: Nate1979
Part of the housing mess was because of people reporting more income than they actually had in cases just like this.


Yes, and that was encouraged and enabled by greedy lenders.


The evil lenders made people lie.....
+1

 

[HerrStig]

The famous "no doc" mortgage made possible by plentiful mortgage insurance. It was an articulated political goal to have "everyone" own a house.

 

[crazyoildude]

when you are in business for yourself you can prove anything! Again remember what i said about the accountant?? You want a creative one!

 

[Tdbo]

Originally Posted By: JayhawkRoy
Sometimes it is best to start with the bank where you have already established a relationship. Locally, there are several banks that say they are small business friendly. Now may be the time to see if your bank is that way.


This. Connections can make a difference. A smaller bank with which you build a relationship may be easier to work with.

 

[hattaresguy]

Relationships are huge. I have a relationship with a mid sized commercial bank, I don't even bother calling the front desk people when I need a loan. I call the president or VP of the commercial lending division. When I need a residential mortgage I call the president of the residential lending division.

I disagree with the mortgage broker advice, in banking its all about relationships. Being able to sit down with decision makers to get things done. The guy at the branch on the front desk is just some junior employee.

Small banks allow people who are not super wealthy to meet the decision makers. At banks such as JP Morgan Chase you can't even get into the private banking division without $30m in assets with them. Most of us are not Donald Trump so we can't call the president of Chase and have him give a [censored] about our loan.

 

[zzyzzx]

Just pay cash instead.

 

[Doog]

Originally Posted By: hattaresguy


I disagree with the mortgage broker advice, in banking its all about relationships.



Do you have a 3.3% fixed rate 30 year mortgage with no points? My broker saved me about $660/year in interest over the life of the loan. His fee was $1200.

Plus, I was moving into a new neighborhood in a new State and knew nobody.

 

[Kawiguy454]

To the "big evil bank" crowd... the mortgage collapse was instrumented by your favorite politician mandating lenders give away money to people without proof of ability to pay it back. Like most social messes these days there's a politician somewhere in there putting the "Fix" in for his pals at everyone's expense.

 

[Andrew1972]

I found the route of small/local banks is easier however the cost is way more expensive in terms of interest rate. Makes perfect sense you pay more due to risk but are glazing over the fact due to "a nice relationship" with a so called VP.

Don't pick one place try multiple avenues and see what transpires.

 

[Doog]

Originally Posted By: madRiver
I found the route of small/local banks is easier however the cost is way more expensive in terms of interest rate. Makes perfect sense you pay more due to risk but are glazing over the fact due to "a nice relationship" with a so called VP.

Don't pick one place try multiple avenues and see what transpires.



+1 Which is why I picked a broker who shopped multiple lenders for me and got me the best rate. Normally I would do the shopping myself but I was 1200 miles away and was too busy at work.

 

[hattaresguy]

Originally Posted By: Doog
Originally Posted By: hattaresguy


I disagree with the mortgage broker advice, in banking its all about relationships.



Do you have a 3.3% fixed rate 30 year mortgage with no points? My broker saved me about $660/year in interest over the life of the loan. His fee was $1200.

Plus, I was moving into a new neighborhood in a new State and knew nobody.


I have one on a rental that is owned by an LLC that 3.5% with no points. Other than that all my mortgages are commercial and 5%.

 

[Dave Hess]

Can your primary residence be owned by an LLC ?

 

[dishdude]

Originally Posted By: Mr Nice
Can your primary residence be owned by an LLC ?


Sure, but how would that help? You'd lose your interest and property tax deduction.

 

[hattaresguy]

Sure but its not going to benefit you.

If your looking to shield assets you need to set up a trust for your primary residence.