The David M. Damaré Mortgage Newsletter

While traditional 9-5 jobs have been taking quite a hit over the past few years, more individuals are turning to a creative combination of self-employment and part-time positions.

Yet, before you step into your new position, self-employment may affect refinancing a home or securing a loan. Before you step into your newly created position, here’s what you need to know:

• You must have two years of tax returns (24 months of self-employment history) in order to submit a loan application as a self-employed borrower.

• The lender first looks at adjusted gross income (AGI) on your personal tax return.

• If your median credit score is 740 or greater, then a conservative gross monthly debt to income (DTI) ratio to qualify for a mortgage is 35%. This means your total monthly expenditures for must not exceed 35% of your gross monthly income. Taxes and insurance on your home will be included.

• If business tax returns are required, income, assets and liabilities have no direct effect on the successful completion of a home mortgage.

If you are going into business for yourself, then purchase or refinance your home before you give up your W-2 income-producing job, or attempt to maintain your W-2 income producing job while establishing your 24 month self-employment history. As you are beginning to build your business, reduce as much debt as possible and maintain a high credit rating.

Do you need a plan to move to secure a mortgage as a self-employed borrower?

ADR Mortgage and The David M. Damare’ Team remain independently owned and operated, accepting nor requiring any government assistance.  We are a boutique lender operating in many states with low cost, the savings of which we pass on to our clients and a penchant for platinum customer service that ensures our continued success and livelihood.

“Mortgage Lending is Our Business: Customer Service is Our Passion.”

Stay tuned and stay in touch with your mortgage professional.  Thank you for the opportunity to serve you.  David.  919.851.0999.

Raleigh Mortgage Man, NC Mortgage Man, Triangle Mortgage Man, Triangle Mortgage Expert all owned and licensed by David M. Damare’.  All rights reserved.

Have you received a recent offer from your bank for a low interest rate to refinance only for an upfront fee of $500? Sounds appealing perhaps, but when you discover that you don’t qualify, your upfront fee is non-refundable.

Different banks call these upfront fees by various names and some banks may even require multiple fees, be it a “commitment fee,” “application fee,” or “rate lock fee,” before an application is even reviewed. In the end, they all equate to the same thing; up to $1,000 in free money for the bank’s coffers.

So how do banks get away with this? When consumers respond to one of a bank’s blanket marketing campaigns for a low interest refinance offer, they often have initial contact with a customer service representative who is not a licensed mortgage professional, and not subject to the lending rules that prohibit the collection of such fees. The customer service representative collects your application, your supporting documents, and your appraisal and other upfront fees.

Only weeks later, your complete loan package is sent to an underwriter, where for the first time someone with knowledge of mortgage lending reviews the file to see if you qualify.

At least once a week, I receive a call from someone who has been deceived by their bank.

With access to multiple lenders, I have the opportunity to provide you with the best finance options. As a federally and state licensed loan originator working for a local brokerage, I receive the application, pull credit and qualify the borrower, in one simple phone conversation at no cost to the borrower, immediately saving you $1000 upfront.

With 8 years’ experience during the most comprehensive and continually changing lending environment, successful completion of both federal and state loan originator testing, and ongoing continuing education each year, I am confident in advising borrowers on rules and regulations and whether or not a particular transaction is possible.

ADR Mortgage and The David M. Damare’ Team remain independently owned and operated, accepting nor requiring any government assistance.  We are a boutique lender operating in many states with low cost, the savings of which we pass on to our clients and a penchant for platinum customer service that ensures our continued success and livelihood.

“Mortgage Lending is Our Business: Customer Service is Our Passion.”

Stay tuned and stay in touch with your mortgage professional.  Thank you for the opportunity to serve you.  David.  919.851.0999.

Raleigh Mortgage Man, NC Mortgage Man, Triangle Mortgage Man, Triangle Mortgage Expert all owned and licensed by David M. Damare’.  All rights reserved.