Buying A Home
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Self employed = GL getting loan?

Hi Ladies,

I'm a frequent bumper, hoping over for some insight. DH and I are possibly looking at moving here before #2 (crazy, I know). Problem is I am a SAHM and DH is self employed. I have heard it can be harder for self employed people to get mortgages due to job security, but was wondering if it would be as hard to get a loan for a smaller amount for a home. The home we are looking at is a good 30-40 k cheaper then what we currently have a loan for, and a good 50-60k cheaper than the original loan amount. 

To put it more simply, if its a smaller loan amount than a current home loan should there really be an issue? Also, the house we currently own we got when we both were working. 

Thanks for any insight

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Re: Self employed = GL getting loan?

  • It's not impossible, but there are more hoops. You'll have to provide more documentation for longer periods of time.

  • Good to know! paper work is no issue, our handy accountant gives us all our tax info each year in cute folders. Thanks for the heads up!
    Image and video hosting by TinyPic Baby Birthday Ticker Ticker Baby Birthday Ticker Ticker *First RE visit 5/10 *B/W & SA Normal! 6/10 *Laprascopy - Removed septum and cyst 7/10 *50 mg Clomid 8/21 +Trigger 9/1 = BFN *50 mg Clomid 9/17 = No response *100 mg Clomid 9/29 + Trigger 10/8= BFP!! *Beta 1= 297 *Beta 2= 612! *It's a Boy! EDD July 4th 2011 *Surprise!! Natural BFP! Beta 1=306, Beta 2= 1100! EDD Aug 18th 2012! IT's a BOY!
  • I agree with PP. One thing to think about is that in addition to the additional documentation, you need to consider that although you are looking at a lower price point, there may be a point where you might need to carry both motgages at once. I would consider trying to sell prior to buying, that way making you less of a liability to the bank when you go for your pre-approval/mortgage approval (especially since you are now on one income rather than two). GL.
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