Self-Employed And Need A Mortgage? Could Be Tough Unless ...

Those easy-come-easy-go lenders who specialized in making mortgage loans to the self-employed have pretty much gone.

Today, if you're in business for yourself, you'll find much tougher standards, making it ever-so-much harder to qualify for a mortgage.

Marc Savitt, president of the National Association of Mortgage Brokers, has some tips that might make the loan-qualifying process a little easier.

• Be prepared for more documentation. Savitt suggests that in addition to two years of tax returns, self-employed borrowers might need to provide a profit-and-loss statement, bank statements and proof that they've actually been in business for the last two years. The old standby letter from your CPA just won't cut it anymore.
• Reduce your tax deductions. Savitt recommends you show as much income as possible by reducing the number of tax deductions.
• Get ready for a larger downpayment. Savitt says mortgage lenders today are finding the old-fashioned 20 percent downpayment to be very persuasive.
• Get your credit rating in tip-top shape. A credit score of 720 or more will give the self-employed some mortgage options.
• Be patient. Qualifying for a mortgage used to be a quick, easy deal. Now, it's going to take some effort on your part and more time.

For more informtion about real estate in the Tampa Bay area, visit my website at http://www.thestpeterealestatesite.com/.

-30-