Mortgage “Employment History” so you can Fire Landlord [Buy a house] FHA Loan [Loan Advisor]


You know when it comes to employment history what’s important? history is the key means going backwards, right? well, we expect a Two-year employment history in most cases to get a loan. There’s a few exceptions When you go to school you get a college degree or maybe even a certificate class of some kind that shows you took this serious and we use that in lieu of The two years experience. Otherwise, we need a two-year history of you work and doesn’t have to be on the same job But it must be two years of work So if you’re looking at a commissioned job, we’re gonna need you know Close to a two-year history of you working commissioned so we could average out the income. You can’t say Hey, I’ve been working at this job for three months. I’m making great money. I’m making 10 grand a month now It really doesn’t work That way you need a history going backwards if your hourly or salary, that’s fine But if we need overtime you have to have a history of working overtime It can’t be. Hey, I worked 18 hours overtime. Less we can I use it. No, unfortunately not This is really important because people ask me all the time. Hey, Chris, what if I go get a second job? That would be awesome for you. You’ll bring extra money in the house, but I can’t use that income for two years So why two years because people get jobs? just so they have some extra money and That doesn’t mean they’re gonna stick it out They work overtime, but it doesn’t mean they’re gonna stick it out and continue to work overtime. So History is the key and all documentation Everything we have to prove pretty much goes by a two-year history

What’s The Difference Between Employed & Self Employed When Looking For A Mortgage?


A lot of people think that getting a
mortgage or remortgaging when you’re self-employed is either hard or
impossible. This is not true. In fact, getting a mortgage or remortgaging is no different than when you are employed. Let me explain the difference. Whether employed or self-employed you will need to prove your income. Employed people are typically asked for three months worth of pay slips for proof whereas when you are self-employed you are likely to be asked for a minimum of one year’s trading accounts. This is the key difference between being employed and self-employed. But if you are able to prove your income then there is no reason that the lender
won’t consider you for mortgage approval. As you can see the difference is
negligible and self-employed people have just the same opportunities as employed people. There are many factors that lenders look at when considering mortgage approvals. At Nest Financial Services, we regularly help self-employed people with their mortgages. Call us and let us take the hassle out of getting you your mortgage.

Mortgages for the Self-Employed – First Integrity Mortgage Services Loan Officer Tim Whitmire.


Self Employed and Commissioned Salesmen Beware!
Hi, I’m Tim Whitmire. I’m a Senior Mortgage Banker at First Integrity Mortgage. If you are self-employed, earn commissions
or bonus income, have any type of varying income, or have recently changed jobs or your
source of income is changing, and you are looking to purchase a home in the near future. This
is a very important video for you! Fannie Mae, Freddie Mac, FHA, USDA, and VA
all have very similar guidelines when it comes to what income can be used and how income
is calculated. I want to give you a heads up of what to watch for. Starting with Self Employed borrowers or buyers;
– Generally speaking, borrowers must be self-employed
a full two years prior to being able to use their income to qualify. Even if you are immediately
successful and earn a great income you must have a two year history prior to using that
income to qualify for a mortgage. It is also very important to understand that
we must qualify self-employed borrowers with their gross ADJUSTED income. This is income
after all write offs. A challenge self-employed buyers often face is qualifying for a mortgage
with their adjusted gross income. You naturally want to, and should, take advantage of all
legal tax deductions. However, by doing this, you are also lowering your taxable income
and make it more difficult to qualify for a mortgage. Those who earn a 1099 type of income instead
of a W2 income and those who own 25% or more of a company are considered to be self-employed
in the lending industry. Commissioned and Bonus income: Fannie Mae, Freddie Mac, FHA, USDA, and VA
also require a two year history of commission or bonus income before using this income to
qualify. If the majority of your income is a commission or bonus, qualifying isn’t too
different than being self-employed. If you have a guaranteed base income plus
commissions or bonuses we can use your base income to qualify without a two year history. I also find that those who have this type
of income many times have unreimbursed employee expenses written off on their tax returns.
Unreimbursed employee expenses written off on your tax returns directly reduces the amount
of income that can be used to qualify. This can have a significant impact on what you
can qualify for. Varying income: If your income varies or fluctuates, this can
also present challenges. If you work in the construction industry and work overtime in
the summer but have layoffs or less hours in the winter we also must average income
over a two-year period. The same goes for seasonal employment or those with 2nd jobs.
Any type of varying income must have a long enough history to establish an average income
for qualifying. Changing jobs or source of income: It is important to not make changes to your
employment during the loan process. Even if you take a very similar position with another
company and earn a greater income, making this change during the loan process will without
a doubt cause delays. At minimum, we must document a full 30 days of earnings prior
to loan approval. Depending on the circumstances, six months of earnings or more may be required. Fannie Mae, Freddie Mac, FHA, USDA, and VA
have very strict guidelines when it comes to qualifying income. It is important to work
with an experienced mortgage professional who understand these guidelines and to start
the pre-approval process early to learn about and prepare for any challenges you may face
in advance. Thankfully I also have alternative loan programs
if your income doesn’t fit into the Fannie Mae, Freddie Mac, FHA, USDA, and VA box. Call me to start the mortgage pre-approval
process today at (314) 402-8184. I look forward to working with you!

Ask The Experts – Mortgages for the self-employed


Another question came in on Facebook, it said
“me and my girlfriend are self employed, what can we do to enhance our chances of getting
a mortgage?” Is it harder if you’re self employed? It must
be? Well, it’s slightly more difficult. The thing
you’ll need if you’re self employed, most lenders will ask you for two years of account
verified to prove this is how much you’ve earned, this is how much the profit of the
business has been. Normally how much you’ve earned and they will take a view based on
that. Clearly there’s a huge amount of self-employed people in the UK and you know they do get
mortgages. It’s just again the same as everything else really — it’s all about being planned
and organised, thinking it through, making sure you get good advice; you ask lots of
questions and kind of have a quality discussion with either your broker or the lender.

Be Part Of A Supportive Self-Employed Community | Crunch Chorus


we know that going self-employed takes
courage whether you’re just starting out or looking to grow your business it’s
important to have support that’s where crunch chorus comes in it’s
free to go to the crunch course meter it’s really easy to sign up I think I
found out why it’s been quite possibly on Facebook or maybe shared there’s
definitely no pressure to sign up to any of their services I really appreciate
there’s no hotel by becoming a quench chorus member you get free access to
helpful tools and resources an invitation to be part of a supportive
Facebook group where it’s even okay to share a photo of your dog we also
arrange regular meetups where you can chat to friendly freelancers over the
years we’ve created literally thousands and thousands of articles to help you
starting around all the common questions like how on earth do i invoice correct
but we created an invoice app for free for that what’s the right time and when
should I go limited with crazes a whole knowledge guide around that it’s all
designed to help you make a living doing what you love it couldn’t be simpler to
join the crunch chorus community just visit crunch code at UK for slash crunch
– chorus and sign up in seconds oh and by the way memberships free and always
will be

Biggest Stock Market Crash Is Coming! Stocks Are Hitting Records As Economic Collapse Fears Rise



even though everything else seems to be going wrong the stock market just continues to soar to new record highs in fact the Dow Jones Industrial Average closed above 27,000 for the first time ever on Thursday investors continue to relentlessly believe that bright days are ahead even though we are on the brink of a war with Iran we are in the middle of a trade war with China California has been hit by more than 10,000 earthquakes over the past week and all of the economic numbers are screaming that a recession is dead ahead there has certainly been a lot of craziness on Wall Street in recent years but the truth is that stock prices have never been as absurd as they are right now it is inevitable that a very painful reality check is coming but for the moment investors are celebrating another historic landmark the 30 stock average broke above 27,000 for the first time in its history rising two hundred and twenty seven point eight eight points or 0.9 percent to twenty seven thousand and eighty eight point zero eight the Dow first closed above 26,000 in January of 2018 so it's been a little more than a year and a half track between 1,000 point moves the gains were largely driven by expectations that the Fed will cut rates insulating the market from a slowing economy and a trade battle with China but if things are so good then why is the Federal Reserve talking about cutting interest rates but before we begin these economic collapse news we would like to thank our sponsors Vikings war of clans the Jap team there asked me to try it out I mean hey why not it's free anyway and after five minutes honestly I was hooked Vikings was inspired by some of the famous old school strategy in RPG games we grew up with in the 90s and in this super game you'll train your own Vikings build an army and village fight against other players at an insane level with over 3 million players in a single event that's like what whole countries fighting each other yeah it's crazy and you really get to choose your own playstyle one is diplomacy and teamwork doing want to dominate and destroy cities or build a badass fortress that works too there's a lot of ways to win so do it your way I like to go on offensive but hey that's just me help support my channel by downloading Vikings for free only from my links in the description box and get the special bonus of 200 gold coins and a protective shield which will be extremely useful for the start download Vikings War of clans for free and play now ok thank you for your support now let's get back to the economic crisis sadly the truth is that the Federal Reserve is considering rate cuts because the economic numbers have been disastrous lately global trade has fallen to the lowest levels that we have seen since the last recession the manufacturing activity just continues to plummet here in the United States manufacturing activity just hit the lowest level in nearly three years well below the pace when President Donald Trump took office another warning sign for the world's largest economy as it marks the longest expansion on record the manufacturing slowdown was driven by weakening demand for US made goods with factories reluctant to produce stock that they may not be able to sell according to the Institute for Supply Management's monthly survey the report coincides with precipitous drops in regional manufacturing surveys that took a hit from President Donald Trump's threats to impose tariffs on Mexican imports and the drought in New Order's suffered by crisis hit Boeing is m's nationwide manufacturing index fell to its lowest level since October 2016 falling zero point four percentage points to fifty one point seven percent while that more or less matched analyst expectations and continued to indicate modest growth it was a far cry from the blistering pace of 2018 and from the 56 percent level when Trump took office any reading above 50 percent indicates expansion new orders deliveries inventories and imports were all essentially flat and customer inventories in order backlogs both track jimothy fury chair of is Em's manufacturing survey told reporters that the steady decline and weakening demand are a little disturbing we're coming down quicker than the last for expansion declines he said usually we go down and come back up go down and come back up not this time it's a bloodbath no matter where you look global manufacturing surveys are signalling growth is over and in most cases outright contraction is upon us JP Morgan's global manufacturing PMI fell to its lowest level for over six and a half years and posted back-to-back sub 50.0 readings for the first time since the second half of 2012 June data signaled a mild decrease in global manufacturing employment for the second month running but every sub index declined in June of the 30 nations for which June PMI reading was available the majority 18 signaled contraction China Japan Germany the UK Taiwan South Korea Italy and Russia were among those countries experiencing downturns the US India Brazil and Australia was some of the larger industrial nations to register an expansion but in the bizarre environment that we find ourselves in investors see those absolutely horrible numbers as evidence that the Fed will soon cut interest rates and that means it must be a good time to buy stocks every bad economic number just seems to fuel the feeding frenzy and there certainly have been a lot of bad numbers in recent days for example we just learned that small business employment has been falling at a rate that we haven't seen in over nine years the small business sector leads the cycle and employment here has plunged sixty one thousand in the past two months haven't seen this in over nine years same decline we saw in February to March of 2008 when the consensus was busy calling for a soft landing that is terrible news but for many investors that is a prime buying signal everywhere we look we see signs of economic trouble the auto industry is mired in the worst slump in the decade home sales have slowed dramatically all over the nation and we are on pace to absolutely shatter the record for most retail stores closed in a single year in fact on Thursday we learned that another major retailer is completely liquidating fashion accessory retailer charming Charlie will close all its stores after going bankrupt for the second time in less than two years more than three thousand full and part-time employees could lose their jobs Charming Charlie Holdings Inc filed for chapter 11 protection in Delaware with plans for going out of business sales at around 261 stores according to court documents the chain expects the liquidation to take about two months the shut down adds to the carnage in the retail sector that claimed more than five thousand eight hundred outlets last year according to coresight research this year is already worse with seven thousand and sixty two announced and coresight estimating the total for all of 2019 could hit twelve thousand after emerging from its previous bankruptcy in April 2018 the company continued to face challenges that make it impossible for Charming Charlie to continue as a going concern Belem said but in an environment where bad news is good news that is just another indication that this is the perfect time for investors to gobble up stocks like there is no tomorrow for months I've been documenting the numbers that indicate that a new economic downturn has already begun and one of the sectors where we can see this most clearly is in the trucking industry freight rates have dipped year-over-year for six months straight while loads on the smart market in which retailers manufacturers by trucking capacity as they need it rather than through a contract fell by fifty point three percent in June eurovia truckers have also continued to warn of a bloodbath as they slash their profit expectations and the company's file for bankruptcy yet no matter how bad things get for the real economy the euphoria on Wall Street never seems to end investors just continue to relentlessly pour more money into stocks when everything is telling them to stop in fact even the bond market is flashing warning sign after warning sign the following example comes from CNN something happened in the bond market last week that's occurred before 5:00 for the past six major market meltdowns the yield on the benchmark 30-year US Treasury bond the lesser known was still important fixed income cousin to the ten-year briefly dipped below 2.5% in other words the 30-year was yielding less than the Federal Reserve's short-term federal funds rate but until the next market meltdown actually happens the irrational optimists on Wall Street are just going to continue to mock those of us that are warning that the party cannot continue indefinitely sadly when the party on Wall Street finally ends it's likely to happen very suddenly and the pain will be off the charts let me say this one more time you only make money in the stock market if you get out in time if you're still holding on to your stocks after the big crash happens it's not going to matter that the Dow once hit 27 thousand because you will never see any of the money that you could have made if you had got an out at the top of the market you

Home Buying: Protecting Your Investment



you we had great memories just making this house a home first time we got home owners insurance actually didn't necessarily know entirely what we were covered for we needed to learn and really get our bearings you might think that you're you know covered for some kind of a natural disaster that you're not covered for so we definitely thought it was very important to ensure the house properly because we want to be looking at it as an investment we want to keep its house in rented you want to feel safe in your home financially and in every aspect one thing that's really beautiful to me about this being our home is that we put work into it I feel like it's ours the renovated bathroom and everything in that room I picked out which is incredible like I look around not someone elses choices my choices and that feels amazing I feel like owning a home is invested in yourself and your future after this like I really have an asset that's mine and it feels great feels completely different than renting I know the importance of home ownership I just feel very lucky if not left to own such a beautiful home and to be able to share it with you know I'm a person that I love you know that just makes it worse right and when you finally land and you are where you're supposed to be it makes everything all the struggles all the missed opportunities it makes it all worthwhile because this is where women to be you

Beginners' guide to mortgages – MoneyWeek investment tutorials



one of the most important financial decisions you'll ever take is getting a mortgage it's one of the biggest financial commitments most people make alongside private school fees to their children if they're lucky enough to be able to afford them so what is a mortgage that's what we'll cover in this video and what do some of the key bits of jargon plus little over the newspapers actually mean right a mortgage is a secured loan that makes it different from a loan that you might take out for example unsecured to buy a car or just simply by racking up credit card debt or using a store card those are unsecured all right now the difference is very simple a secured loan a mortgage here's the deal you go to a bank say I want to borrow a hundred thousand pounds for argument's sake the bank says that's fine Tim but we want the loan secured on an asset an asset being the house you plan to buy a deal is simple and it's a two-sided Deal in return for that security the bank will offer you a low interest rate much lower than on say a car loan or a credit card or a store car loan all right you can pick up mortgage rates for around 4 percent for 5 percent at the moment depending on the period you go for where the unsecured store card loans could cost you up to 30 all right so that's the upside the interest rate is low but that's because the load is secured and that means if you fail to repay it or keep up with repayments the bank reserves the right to seize your property and sell it and use the proceeds to repay the loan right so a mortgage has one benefit upfront the interest rate tends to be a lot lower you can get other loans and that's because the bank has a lot of security in the form of your property all right now property prices can go down as well as up all right which is why banks don't always lend or certainly not anymore the full value of the property to somebody who wants a mortgage okay the heady days the ridiculous days before the financial crisis are now long gone so that brings me on to my first piece of jargon relate two mortgages loan to value LTV now if you see that what does that mean and what practical consequence does it have for you trying to get a mortgage well here's how it works people you've seen my videos before when other graphics our particular Forte of mine so there's a house all right let's say that the value of the house on the open market is 100,000 pounds all right and you plan to put down a 30,000 pound deposit lucky you and that means you need a 70 thousand pound alone or mortgage all right now how do I know you put down a xxx half and deposit well maybe you can't afford a 30,000 pound deposit the deposit is down to what you can manage to scrimp and save together okay persuade parents or friends to give you whatever happens to be so you've got a deposit from somewhere all right and the rest is the mortgage so a combination of what's called equity that's your bit and a loan from bank secured on the property makes up the funding for the hundred thousand pound property all right now here the LTV as you'll sometimes see it quoting the press put a jargon there the loan to value ratio is simply that compared to that as a percentage all right so here the LTV 70,000 as a proportion of the value of the property literally our loan to value ratio is 70% all right and in simple terms basically the higher that is the harder it is to get the loan all right now back in the ridiculous days pre-financial crisis there are banks around that would say no problem you can have LTVs of more than one hundred percent one hundred and twenty five percent you can actually borrow more or than the value of the property from a bank I'd even give you hints and tips as to what to do with the extra alright so on a hundred thousand pound property this may sound a little mad but it was happening you could borrow one hundred and twenty five thousand pounds I'm not kidding your bank website saying things like well book yourself a holiday buy a car with the extra now that is madness I've got a lot of people into big trouble which is why LTVs tend to be a lot lower Nell okay because of something called negative equity she's the third bit of jargon I'll cover just now but here's my take away ok the higher the loan-to-value ratio naturally the higher the interest rate and the heart of the mortgage will be to come across so if you can scrimp together as much of the deposit as you can get hold of bring down the loan-to-value ratio but tend to find that better deals and become available why are we no longer seeing loans in excess four hundred percent the value the property while unfortunately if you allow someone to borrow a huge amount of money and the value of the property then drop so imagine for example if I take out the deposit altogether alright and I make the loan one hundred percent alright so imagine that the whole thing still following my scribblings here it's funded by a mortgage the danger is this if the value of the property then drops which it could do to ninety thousand you are now in something called negative equity it's the danger taking out loans that are a high proportion of the value of the property negative equity means the property is not enough to pay back the loan ninety thousand if you sold the property tomorrow won't pay back a loan of a hundred thousand pounds that's a problem again can leave you unable to move for example so that's a trap that quite a few people unfortunately knowing the other or otherwise probably unknowingly hell into it's probably price decided to come off okay once we hit the financial crisis in 2007 and that's why unfortunately banks are now being very very conservative unfortunally because it makes it harder for other people to get onto the property ladder at all okay so that's a negative equity what the Americans call being underwater okay now once you decided how much you're going to borrow seventy thousand in my previous example you've got a couple of choices you can either go interest only or you can go a repayment style mortgage okay what does that mean basic choice all mortgage products all loans fall into one of those two camps essentially no matter how they're written up in the advertising literature there are interest only or repayment as worth bearing in mind interests only is tempting with interest only you borrow let's say a 100,000 pounds and you commit to just pay the bank the interest on the loan okay at whatever rate that happens to be 4% for argument's sake so the 100,000 pounds you're not paying back all right now how's that how's that work you've got to pay back at some point the idea is you just write a check if you like you pay the bank the interest every month on the loan and then you set up another vehicle that will eventually pay off the capital you've got to still pay off 100,000 pounds as well as the interest all right and that could be some sort of equity based product all right they used to be known as it endowment mortgages now upside to interest only loans the payment every month the bank is lower than it would be if you were paying the back interest and some of the original capital of hundred thousand pounds okay that's the upside the downside is you'll be pretty damn sure that whatever you're going to use to repay the capital after 20 or 25 years for argument's sake is enough to do the job and the problem a lot of people found or have found in the past is they set up these kind of little investment funds on the side saying well after 20 years this will have grown footsie 100 fund to 100,000 pounds or more so I've got to clear my mortgage have a party all right problem is if the equity market plummets your little savings vehicle isn't enough to repay the original loan then you got a problem okay so interest only mortgages attractive because the initial payment the bank will be relatively low but you've got to have some way to pay off the capital that you've borrowed in the future the alternative is a repayment mortgage as the name suggests there every month your repayment the bank is interest on the loan four percent private let's say plus a little bit of the original capital you borrowed the idea being that of 25 years for example you will have cleared all of the 100 thousand pounds if that's the amount you borrowed that you owe the bank okay now downside to that one is you will find your monthly payments the bank are a little bit higher because they include interest and some capital course the upside is you know provided you keep your job and keep up the repayments you will clear your mortgage after 20 or 25 years I no doubt about it because you are chipping away at the capital every month okay now that means that normally I would recommend if you could afford it you do a repayment mortgage of some sort but watch out again there are a couple of traps which I want to finish this video on this is a beginners introductory guide there are a few traps to watch out for with mortgages so decision tree so far is how much do I want to borrow how much do I need to borrow how much of a deposit have I got this is the amount required to buy the property I'm after okay that will affect the deal you can get from a bank but then you need to decide on the amount you're borrowing am I going to go down the interest only or the repayment style route okay and I've already highlighted a couple of criteria to think about and making that decision now well let's say for a moment I've picked a repayment style mortgage there are one or two other things to look out for number one when you're looking up mortgage rates again you can look up on sites like money fax and money supermarket and so on you can you can look up these rates on a number of different sites when you're looking at mortgage rates just watch out because you might see how juicy low rate aha brilliant you know frogman's a 3% anything well that's a really low interest rate I'm having some of that watch out number one is there an arrangement for you on top some borrow on some lenders will charge you quite a meaty arrangement fee we could be talking you know a thousand pounds 1,400 pounds two grand just to set up the mortgage all right all of a sudden that 3% is not looking quite so good so you need to compare apples with pears you know it's 3% within the arrangement fee the same as five percent with no arrangement fee for argument sake all right there's one little trap to watch I will always check the arrangement fee number to watch out for lowball initial deals the ones where the bank says are come to us borrow from us both of us because what we can do is set you up for a few years on a really low rate then watch out because once that low rate period ends you might be kicked into what's called the standard variable rate svr that may be first of all not a fixed rate secondly a lot higher all right thirdly redemption penalties if you take out a deal and it commits you to a minimum number of repayment their numbers be a number of years watch out you're not stung okay if you need to sort of switch product or kick out of there early okay you know as something goes wrong you may be stung for a big Redemption penalty simply to get out of the mortgage earlier or move it or change it okay so there's a few traps to watch out for when you're shopping around for a mortgage all right so just to recap there a mortgage is a secured loan the good news is that means you can borrow lower than you would on other types of loan okay first decision to make how much do I need to borrow or less you need to borrow that that's the deal you'll get okay third thing just to bear in mind is that you've got to make a decision between interest only and repayment okay and you've also got to make a decision between paying a fixed rate and paying a variable rate of interest lots of things to think about here fixed rates certainty variable rates well the opportunity may be if your mortgage payments to go down and interest rates fall as well as up if they rise okay so the another decision to make there do watch out for little stings in the tail including arrangement fees low initial rates to grab you in and redemption of these to download this free video to your favorite mobile device find us on iTunes by searching for money week and the entire video archive is also available free just visit money week com