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    Mortgages are Tougher to obtain For the Self-Employed

    home loans for the self-employedThere is no doubt that mortgages are tougher to acquire for the self-employed, but they are not impossible. As one would expect there are certainly more hoops to jump through for those who make a living on their own. Gone are the days of stated income forms, having been replaced by the need to furnish tax returns. Loans for the self-employed are calculated from averaging the two most recent years of tax returns, which in today’s economy could show less income than usual for a person.

    The bursting of the housing bubble was caused in large part by those borrowing money off of stated income. Many were borrowing more than they should of and biting off far more than they could realistically afford. Tighter lending restrictions have eliminated stated income for good reason. Therefore those who are self-employer will only qualify for what their latest income allows for and no more. That being said, loans are still attainable for those who are making money, borrowers simply need outstanding credit and a lot of documentation, as well as money in the bank.

    While lending is expected to eventually loosen, whether or not stated income loans will return is still dubious. Going the private route will mean a higher price for any loan without guaranteed income. For the time being taking the straight and narrow route and coming to a lender armed with documentation is the surest way to borrowing success.

    Paris and Connor MacIvor

    Connor and Paris MacIvor are in the Top 1% of Realtors Nationwide, starting their real estate business in 1998 with RE/MAX Gateway - Santa Clarita Valley and Valencia CA. Their becoming licensed real estate consultants and representatives came from the horrible experience they had when they bought their first home. There were many things that the agent they had hired did not explain and disclose, which per law he should have. Getting that agent on the phone after they closed escrow and after he had gotten paid was impossible. Paris and Connor called the broker, the board of realtors, the office manager and all they received was the promise of a phone call back. The remedy did come, but not as fast and in the way they wanted. That act - that bad agent was the reason why Paris and Connor became Realtors. That was all they needed to vow to never let the same fate befall anyone else, that befell them. Today Connor and Paris are focused on client service. Protection and top-shelf service with regard to their real estate clientele. They primarily work within the Santa Clarita Valley and Valencia CA. However, for a referral, where 80+ of their business is referrals they have License and Will Travel to other parts of Ventura County, Los Angeles County, and Orange County to handle real estate transactions for those who trust their real estate operation. Writing on their Real Estate Blog is a passion. SCVnest.com/blog is where you will find over 10,000 real estate articles. Go to SCVnest.com/radio to listen to their latest real estate radio broadcast.
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