What lenders look before granting a mortgage if you are self employed?

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I am self-employed and owner of an LLC. Our gross income was 150 000 in 2008. We paid 50,000 and 55,000 written off as business expenses. We wrote the 60,000 Operating expenses, as if we did not have as much tax as Guy can pay our taxes to write off a lot of things found. On my tax return, it only shows my income 45.000.So I guess what I’m getting is that if the lender that you have to realize that I have a separate LLC? Or they just want to see my income was 45 000? My FICO score is 731 to now, if that makes a difference.

1 Comment
  1. Reply
    Life Forms Etc.
    April 30, 2011 at 12:17 am

    First they look at how long you have been self employed. Most require three years. They will want to see tax returns for those years. It helps to have a financial statement and balance sheet ready as well. They will look at your credit rating and if you have a spouse his income and ratings. Getting loans for self employed folks is much harder than those employed by another business. I can’t speak for now as I haven’t tried lately. When we bought our home years ago that is how it was. We also had a good down payment that the Realtor said helped in our case.
    Often people try to buy what they want not what they can COMFORTABLY afford. Should something happen to one of you or should the business burn down or some unknown rainy day pour down on you. Think of living below your means not at them or above them hoping or expecting things will get better. That is why so many find themselves in foreclosure now. When you get a house you start building equity. The more you can pay toward it the faster you will pay it off or build up more equity to get that dream house.
    edit: They take all things into consideration including outstanding loans, your vehicle the age of it and if you have a note on it. Same applies to boats, school loans, etc.
    I guess the other answer thumbs downed me. I did not report him, however I don’t think answers allows advertising.

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