Find out how much loan I qualify for

User Forum Topic
Submitted by XBoxBoy on July 27, 2020 - 11:18am

My wife and I are thinking of making an offer on a house we like. We will pay cash for most of the house price, but I would like to take a loan for about $500k to do some remodeling. But I have no idea how much loan we would qualify for. My income is well documented with tax records but I'm self employed so things are more complicated. What's the best way to find out how much loan we would qualify for? Talk to a loan broker? Talk to the loan manager at our local credit union where we do business? Use an online loan company?

Thanks for any suggestions/advice.
XBoxBoy

Submitted by sdrealtor on July 27, 2020 - 1:07pm.

Talk to an experienced loan officer not someone sitting at a desk at a local bank or credit union. They don’t know what they’re doing

Submitted by gzz on July 27, 2020 - 4:34pm.

I’ve never had issues as the sole owner of an S corp with W-2 salary + k-1 profit and a physical office and employees. As you get less official, it gets a little harder.

A few online deep discount places don’t take self employment income, but they are the exception. My last mortgage was with Sebonic and they had the lowest rate on the Internet and no penalty for self employment.

It seems like they will base your income on your last two tax returns and your YTD current monthly income.

A local mortgage broker can get you a prequalification letter to use when you make offers on properties. Might be the best route, and certainly the easiest.

Submitted by HLS on July 27, 2020 - 9:40pm.

Covid19 has added some extra conditions for self employed.
I'm a mortgage broker who can explain what's going on and help you figure out what you may qualify for.
I'll send you a message.

If income has been affected by Covid, previous tax returns don't mean as much as they used to.
In some cases only 1 year tax returns are needed but you will probably need to provide YTD P&L with bank statements.

Many self employed who have been affected this year cannot qualify at the moment.
Having an office and employees doesn't make it any easier or more official.

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