Loan Advice for Self-Employed Workers

Are you looking to apply for a mortgage? Apply now 

 

For a more in-depth analysis to help you get a loan if you're self-employed view this great article. 

I recently received a very good question from a client, so today I am going to be speaking about how you can qualify for a loan if you're self employed. There are several reasons why it's harder for self-employed individuals to get mortgage loans.

1. Lending standards have simply gotten tougher. Ever since the market crashed a few years ago, it has been tougher to get approved for a loan.
2. There's a fine line to what you as a business owner report to the IRS for taxation purposes, and what you as an individual report as income so a mortgage lender can help qualify you for a loan. Self-employed individuals have a lot of expenses, and that reduces your income, which the IRS uses to calculate your taxes. 
3. You may not bring in revenue during your first year of business. This will cause issues when mortgage lenders require a 24-month average to calculate your income. This could create problems in reaching the standard income requirement if you have negative income one year. The most important thing here is to ensure that your income increases year-over-year.

The best advice I can offer to self-employed business owners trying to qualify for a loan is to speak with a mortgage lending professional such as myself, The Mortgage Doctor. We can discuss how you’re specific situation affects your ability to qualify for a mortgage. 

Please contact me with any questions you might have. I'm always willing to speak with you!

Information and/or data is subject to change without notice. This is not a commitment to lend or extend credit. All loans are subject to credit approval including credit worthiness, insurability, and ability to provide acceptable collateral. Not all loans or products are available in all states or counties.  ENG Lending and Bank of England are not affiliated with any government agency. ENG Lending is a division of Bank of England. NMLS 418481. Member FDIC.

How Can You Lower Your Tax Bill?

Are you looking to apply for a mortgage? You can simply apply by clicking this link to take you to the application. If you have any friends, family, or co-workers who are purchasing a new home or refinancing their existing home, please forward this email to them or reply back to this email with their contact information. I very much appreciate your referrals. I'll take excellent care of them!

 
It's just about the time of year everyone dreads: tax time! Are you prepared? If not, I've put together a list of things to think about before March 1 rolls around.

1. Plan for retirement. Did you contribute to an IRA? If you're eligible, make sure you get that taken care of before April 15.
2. Organize your taxes. Get your records, expenses, and last year's tax return in together and give them to your accountant.
3. Keep an eye on Washington. Congress can implement different laws that can greatly affect you when filing your taxes.
4. Itemize your expenses. You can take the standard deduction, but if you own a home or have un-reimbursed employment expenses, you have multiple items you can deduct to lower your tax bill.

If you have any questions, seek out a qualified tax accountant. I can help you pay the lowest amount possible on your taxes, and help take some of the stress out of the process.

 

Thanks, and I look forward to hearing from you soon!

Source: https://turbotax.intuit.com/tax-tools/tax-tips/Tax-Planning-and-Checklists/Tax-Tips-After-January-1--2015/INF12070.html

Information and/or data is subject to change without notice. This is not a commitment to lend or extend credit. All loans are subject to credit approval including credit worthiness, insurability, and ability to provide acceptable collateral. Not all loans or products are available in all states or counties.  ENG Lending and Bank of England are not affiliated with any government agency. ENG Lending is a division of Bank of England. NMLS 418481. Member FDIC.