| Gamefreak | 12-06-2013 04:45 AM | Self Employed and Home buying As many of us here are self employed and I'm sure several of you guys have bought homes, how did you guys do it?
Im looking to purchase a home next year in CA. Have decent credit score and 10% downpayment on a 350k duplex. |
LilyPily | 12-06-2013 05:32 AM | Re: Self Employed and Home buying Sacrificed a lot and didn't spend much, worked overtime, worked several jobs to get my first home and then gradually purchased more over the years. It's not easy and interest rates weren't that great when I first bought. |
GreenBean | 12-06-2013 05:34 AM | Re: Self Employed and Home buying Hard work.
Long hours.
Hard work.
Long Hours
Hard work.
:juggle: |
Re: Self Employed and Home buying I bought a condo with early eB sales (back in days of money orders) - long long nights, little sleep...I was working sales on eastern standard time AND pacific standard time...wow those were crazy days...and I was in school at the time |
agent-x | 12-06-2013 09:53 AM | Re: Self Employed and Home buying Quote:
Originally Posted by rsot
(Post 509237)
I bought a condo with early eB sales (back in days of money orders) - long long nights, little sleep...I was working sales on eastern standard time AND pacific standard time...wow those were crazy days...and I was in school at the time | WOW
Respect to you |
BigCJ | 12-06-2013 10:29 AM | Re: Self Employed and Home buying RSOT: THE LEGEND! :thumb: |
Gamefreak | 12-06-2013 12:11 PM | Re: Self Employed and Home buying Guess i should have rephrase my ?. what kind of stuff did they ask for? |
Re: Self Employed and Home buying Up here, they asked for statement of tax...was different as a student though since I didnt really declare a lot of taxes ( :FF: ) - I didnt go for a mortgage...I had cash....was a very sick time of budgeting, saving, investing...
Thanks for the props |
JJGold | 12-06-2013 03:53 PM | Re: Self Employed and Home buying I think you'll find that lenders want more than a 10% down payment on an investment property. I'm assuming you're asking what documentation you'll need to secure a mortgage? Be prepared to supply copies of your last 2 or 3 tax returns (w2's, 1040's, et al), recent copies of bank/investment account statements, current pay stubs, etc. If you're self-employed be prepared to complete Internal Revenue Service Form 4506-T, which enables the lend to see your IRS tax transcripts. |
Sandy D | 12-06-2013 05:00 PM | Re: Self Employed and Home buying When I bought my first home I was in my early 20s.
Working 16-20 hour days running my own manufacturing business and many days without any sleep at all.
Dont know your age or your credit and dont really need to know but I can tell you as self employed they will be asking for 2-3 years taxes, profit and loss statements, and other business info so they can be assured your income will continue so you can pay them.
A larger down payment will help a lot.
We did not buy until I had around 50% down at that time. I worked without sleep then to put away any money I could put a large down payment down on our home.
Age was considered as well as we were in our early 20s then and had only a few years of any credit history behind us.
Hard work, determination always pays off with a good decision of making sure you can cover your added expenses when owning a piece of real estate.
20 years later I am still a workaholic and work around 14-16 hours a day almost every day other then a day here and there to spend time with the family.
Once you get into the mode of working long hours and have a dream of owning your home GameFreak you will work yourself to death to obtain your goals. Which is a good thing.
For me, I dont like debt, have not had any for many years so hard work will pay off for you.
Good luck.
Get your ducks in order, paperwork, business plans, taxes, profit and loss, maybe even have an accountant go over your numbers with you to make sure they feel you can afford what you are buying. |
Gamefreak | 12-06-2013 09:12 PM | Re: Self Employed and Home buying those are just the info i was looking for. i have more money but i don't want to put down too much should something happen. |
Sandy D | 12-06-2013 10:44 PM | Re: Self Employed and Home buying Quote:
Originally Posted by Gamefreak
(Post 509451)
those are just the info i was looking for. i have more money but i don't want to put down too much should something happen. | Large down payment helps you obtain the loan. Less risk for them.
Something you can toy with when applying etc.
Never hurts to ask, if I put down a little more does it help me with the loan?
Of course the answer is yes but you should see what would take your loan over the top to be approved. |
GreenBean | 12-06-2013 11:03 PM | Re: Self Employed and Home buying |
Re: Self Employed and Home buying Agree with Sandy and GB, you should put a larger $$$ down, this way you have a higher chance of getting the property, plus the interest won't kill ya at the end. |
Re: Self Employed and Home buying The interest on a 30 year mortgage or so REALLY adds up...took real estate course and looked as what is being paid since it is compounded and such....insane |
Sandy D | 12-07-2013 01:28 PM | Re: Self Employed and Home buying He could always go with a 20 year and try to get a lower rate also. |
GreenBean | 12-07-2013 07:00 PM | Re: Self Employed and Home buying Quote:
Originally Posted by Sandy D
(Post 509589)
He could always go with a 20 year and try to get a lower rate also. | Homework done now before the emotional excitment of finding a property starts to cloud judgement is crucial.
For properties I have purchased with a mortage, I have always worked repayments out at a much higher rate than needed.
I allowed a safety net for the deal. Got caught twice where there were interest increases. But I was covered because repayments were higher. |
LilyPily | 12-07-2013 07:21 PM | Re: Self Employed and Home buying Good advice as usual Greenie! We also did the same thing - pumped more into the mortgage than per usual and tried to live off the rest of our income so when interest rates did eventually go up we weren't struggling and had some equity that lowered the interest rate repayments. |
Sandy D | 12-07-2013 07:39 PM | Re: Self Employed and Home buying Getting a loan these days in the states is much more looked at then in the past because of the massive record foreclosures we have had over the past 3-4 years.
OP needs to have everything lined up and ready to go right from the get go.
Check and double check your numbers, IDR etc before you apply.
IDR ratio is important when applying using self employment. |
LilyPily | 12-07-2013 07:41 PM | Re: Self Employed and Home buying Also buy Income Protection - should you get injured and lose your job because of that - how are you going to make repayments? Not sure if this type of insurance is expensive in the US??? |
yotano211 | 12-07-2013 08:55 PM | Re: Self Employed and Home buying Quote:
Originally Posted by JJGold
(Post 509400)
I think you'll find that lenders want more than a 10% down payment on an investment property. I'm assuming you're asking what documentation you'll need to secure a mortgage? Be prepared to supply copies of your last 2 or 3 tax returns (w2's, 1040's, et al), recent copies of bank/investment account statements, current pay stubs, etc. If you're self-employed be prepared to complete Internal Revenue Service Form 4506-T, which enables the lend to see your IRS tax transcripts. | A dulex is not considered investment property. Investment properties are not considered until you reach 4 or more apartment units, most times 5 or more. The OP can get a normal mortgage rate on a duplex and most times on a fourplex. |
Gamefreak | 12-07-2013 10:00 PM | Re: Self Employed and Home buying A duplex is what i will be getting. Live in one rent out the other to family. IDR is NOT a problem as i don't have any bills but my credit ( 680 right now ) is little messed up from when i was 18 and stupid. Luckily those baddies will fall off late next year |
Sandy D | 12-07-2013 10:18 PM | Re: Self Employed and Home buying Quote:
Originally Posted by Gamefreak
(Post 509636)
A duplex is what i will be getting. Live in one rent out the other to family. IDR is NOT a problem as i don't have any bills but my credit ( 680 right now ) is little messed up from when i was 18 and stupid. Luckily those baddies will fall off late next year | Have you tried disputing them off?
Have you added new credit to help boost your score?
Be nice to get above 700 threshold.
Since they are this close to the statute of limitations you might be able to dispute them off. |
Gamefreak | 12-07-2013 11:42 PM | Re: Self Employed and Home buying I can't dispute them off now. its kinda too late for that.
i was advised not to get any new lines of credit when you are going to be applying for a mortgage.
I can get it up to 700 by lowering my utilization on my current cards to about 4%
I really don't need any other cards though as my amex covers everything that i use my cards for. But when i do apply i will apply for couple of amex due to their backdating and I'm sure i can get good limits with them for all the money i put on my charge card. |
Sandy D | 12-08-2013 12:51 AM | Re: Self Employed and Home buying Quote:
Originally Posted by Gamefreak
(Post 509644)
I can't dispute them off now. its kinda too late for that.
i was advised not to get any new lines of credit when you are going to be applying for a mortgage.
I can get it up to 700 by lowering my utilization on my current cards to about 4%
I really don't need any other cards though as my amex covers everything that i use my cards for. But when i do apply i will apply for couple of amex due to their backdating and I'm sure i can get good limits with them for all the money i put on my charge card. | Correct, do not apply for anything.
What I meant was if you knew your score you needed to get a boost to get to 700 range before you applied.
Since you already have cards yes, paying them off will help you a lot but it might take 30 days for the report to show it.
Why is it too late to dispute them?
Better to dispute closer to statute of limitations then earlier in time.
Again, if you thinking of applying soon just leave them and pay off debt and wait for the report to update showing it.
No sudden moves on your files if you are going to apply soon. |
jamcocktail21 | 12-08-2013 10:16 PM | Re: Self Employed and Home buying Quote:
Originally Posted by Gamefreak
(Post 509451)
those are just the info i was looking for. i have more money but i don't want to put down too much should something happen. | You already got your answer here from other members just wanted to add something about your message above
Buying real estate is like buying gold what could happen buying a duplex? I would be more concern about keeping your money in the bank then owing a property
I have many properties and i don't regret investing in real estate from the day i started
Good luck |
shaddypro1 | 12-12-2013 01:41 PM | Re: Self Employed and Home buying Quote:
Originally Posted by rsot
(Post 509237)
I bought a condo with early eB sales (back in days of money orders) - long long nights, little sleep...I was working sales on eastern standard time AND pacific standard time...wow those were crazy days...and I was in school at the time | Nicee man! good stuff | All times are GMT -5. The time now is 09:25 AM. | |
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