July 19th, 2013
Happy Friday! Time for more Q&A! Please always feel free to send in your questions, I am happy to address them immediately. I hope you find this information to be a true resource. Let's get started...
- I want to buy a home. I think I am going to need to pay off some debt to qualify for the home I want to buy. How can I do this? What is your timeframe? There are a couple of different ways this can be handled. If you have the time, you can pay off the debts and then we wait to pull credit until the balances are updated, approximately 30 days. This will be beneficial for a couple of different reasons - the balances will update and also your credit score should improve. If there is not time, we can work toward the goal, but your existing credit score will be the score we work with for your file.
- We are a little confused. We have to provide a lot of additional documentation for deposits. Why? "Anti-Money Laundering" as part of Bank Secrecy and The Patriot Act requires all non-payroll deposits be sourced. One possible underwriting perspective might be, any deposits that are not payroll must be sourced to verify the funds are not borrowed.
- I am self-employed. I own one S corporation and two LLC's. Why in the world do I need to give you all of these tax returns? In the world of self-employment, individuals handle their declaration of income differently and also expense items differently. Your income is derived from three separate sources. In order for me to be able to properly analyze your income and provide the most accurate picture I can, I will need two years federal tax returns with all schedules. We are able to add in non-cash deductions to derive a truer income picture. "Job Expenses" on Schedule A or Itemized Deductions are also averaged and deducted from income as an expense. If you take w-2 income as well from the companies, I will need 1 month of your most recent pay stubs as well as two years W-2's. All sources of income must be taken into consideration.
Please feel free to contact me with any questions you might have. I look forward to working with you and your clients.
Jennifer Keenan, Senior Mortgage Consultant
NMLS# 101837, Tidewater Home Funding (757) 366-8690