Brianna.......
1) what is your Realtor Doing on the side lines for you?
2) your deposit is safe due your mortage contingency clause in your AOS. (I hope)
3) Yes the Big 5 Banks are squeeeezing the self employed buyers


Brianna we want to help but you may be under an agency representation.

I would call your agent and tell them to STEP UP TO THE PLATE!

All the best, John Curci RE/MAX Properties 215-757-2889

Thanks Mark,

I hate it when I am wrong :-)

I have not had the pleasure of using one of those lenders

We do have a specific PA law instituted by the Department of banking that says income must be verified. Not sure if that's why they don't accept unaudited P&L's.

Alan

Just FYI to my lender and RE agent friends, If it is FHA loan you can use a unaudited P&L statement and use that for income if your lenders investors allow it. FHA doesn't call for that. I'm not sure if this is conventional or FHA but where I live most first time home buyers use FHA. The underwriter would want to see two years tax returns to see if P&L makes sense. The underwriter could also ask for 12 months bank statements to do the math. NXTLoans is just one of the lenders who follow FHA guidelines with no overlays except DTI. Most lenders have to sell their loans and have a set of investors that set overlays on top of the guidlines to mprotect their money from "buy backs". Lenders who don't have general many overlays generally hold and service the loan for 12 months before they sell the loan. We call that performing loan.

Hello Brianna,

first of all the lender will not use a signed P&L for 2001 as income uinless it is fully audited and nobody ever gets there tax returns fully audited. So you will be qualified on the 2009 and 2010 and they will use the average. However if the 2010 is smaller then they will use only that year and you will need an explanation for your declining income. Your lender should know this and should have explained this to you and your Realtor would probably not know this so going to a Realtor with a mortgage question is not a smart idea in my opinion. . YES that could affect your qualification requiring you to put money down or requiring your Mortgage Lender to look at your file for ways to make this qualification work. Personally I can think of a few ways to get that done since you are only talking $54 per month difference in qualification at at worst. Call your lender. Ask them if that change in income is going to make a difference. If so, you can pay off a credit card, get the cheapest homeowners insurance for a day, and maybe have the lender ge a bettert interest rate to make the deal work. All of them lead to a lower monthly payment which would facilitate qualification. As for the sourcing of the deposit, that is standard procedure and you have given them the information they need.

Regards,
Alan Openshaw
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
VOTED BEST IN BUCKS 2010
NMLS ID 143960

Hi Brianna,

I just realized that we had a situation like this a few years ago, ?2008/2009?. Anyway, the mortgage underwriter accepted the annual P&L statement signed by the CPA along with the 12 preceeding monthly bank statements to show income and cash flow for the self-employed.

Hope that helps.

All the best,
Larry Lichtman
REALTOR

Hi Brianna,

I agree with John & Sheri Curci below. You should not be stressing out like this. YOur Realtor should be helping ease your mind through this process.

As the mortgage pro below said: The $4K increase in average annual income for two years may not affect your D/I ratio that much

Another idea would be since you are self employed, you may be able to file an amended 2009 and/or 2010 return, claim more earned income, revise deductions, etc. and pay the difference in taxes to boost your income as needed for the mortgage lender. The question is will that do the trick before your return is processed and on record? Keep the faith. Stop stressing. You have 2-3 weeks before you need to develop alternative plans like extension of settlement deadline, re-lock/float your rate, ask Landlord for an extra week, etc...

Good luck with everything =)

All the best,
Larry Lichtman
REALTOR

Standard policy would be to use your 2009 and 2010 returns until after April. If they used 2010 and 2011 it's because you told them you filed and they wanted to use more income. If that's the case, then all you can do is wait for the 4506T to come back. Are you pinched on debt ratio? if not, why go through the hassle for 8K more income averaged over 2 years? If the processor really said this to you, she is not very bright.

there is nothing abnormal about what you stated so you will probably be fine, it just appears that they are taking the path of most resistance to qualification.

Brianna.......
1) what is your Realtor Doing on the side lines for you?
2) your deposit is safe due your mortage contingency clause in your AOS. (I hope)
3) Yes the Big 4 Banks are squeeeezinf the H... out of the self employed buyers
4) Some underwriters think they are god and need a re-arrangement of their thoughts.

Brianna we want to help but you may be under an agency representation.

I would call your agent and tell them to STEP UP TO THE PLATE!

All the best, John Curci RE/MAX Properties 215-757-2889

Web Reference: http://www.HomeCatch.com

Brianna.......
1) what is your Realtor Doing on the side lines for you?
2) your deposit is safe due your mortage contingency clause in your AOS. (I hope)
3) Yes the Big 4 Banks are squeeeezinf the H... out of the self employed buyers
4) Some underwriters think they are god and need a re-arrangement of their thoughts.

Brianna we want to help but you may be under an agency representation.

I would call your agent and tell them to STEP UP TO THE PLATE!

All the best, John Curci RE/MAX Properties 215-757-2889

Web Reference: http://www.HomeCatch.com

Brianna.......
1) what is your Realtor Doing on the side lines for you?
2) your deposit is safe due your mortage contingency clause in your AOS. (I hope)
3) Yes the Big 4 Banks are squeeeezinf the H... out of the self employed buyers
4) Some underwriters think they are god and need a re-arrangement of their thoughts.

Brianna we want to help but you may be under an agency representation.

I would call your agent and tell them to STEP UP TO THE PLATE!

All the best, John Curci RE/MAX Properties 215-757-2889