Are you self-employed and thinking about buying a home? Check out this mortgage tip from Carmen Hill of Direct Mortgage Loans......
"Molotov Cocktail for a Mortgage Loan Disaster : Filing Taxes as a Self -Employed Person.
If you are Self Employed and wanting to buy a home in the next year or two, tax time can be the perfect time to ensure you can qualify for a mortgage. Loan Underwriters (that one person that can give you the fairy tale or smash your dreams) determine income based on a simple formula …Gross income minus any business loss or deductions one takes to avoid paying high tax amounts at year's end. It is a double edged sword…would you rather pay in taxes at the end of the year or qualify to buy a home ?
If you are looking for the right answer, there is no right answer. It is unique for everyone.
The key is talking with your mortgage banker now before your taxes have been prepared . Having a personal mortgage banker can be the key to owning your first home."
Thanks, Carmen, for the great tip. Self-employed folks are already dealing with inventory, payroll, and personnel but we all have to live somewhere. If you're thinking about buying a new home, give Carmen a call. She'll give you professional advice based on your own circumstances. Once she pre-approves you, give me a call to find the perfect home for you.
Carmen Hill
ph. 251-504-3232
