Holly Walther Lending Team: Fun Fact Friday – Loans for the Self Employed and Business Owners

Holly: Hey guys, happy Friday. It’s Holly and my little miss Daisy, and we are here with this week’s fun fact Friday. So guys, as this pandemic continues and is somewhat coming to an end, self-employed borrowers and business owners have been affected the most when it comes to qualifying for a mortgage loan. It’s not that we can’t do it, it’s just that it’s a little more complex in today’s environment with what we need as far as documentation. So make sure that you are keeping great books. Like before, we’re not only going to need business and personal tax returns, we’re also going to need a year to date PNL.

And then, they’re now asking for three months business bank statements. You may say, why? What if I’m not using the business assets for anything? Well, in this environment, as we continue to move out of the pandemic, they’re wanting to make sure that that business shows activity. So they’re wanting to see that money is coming in and out of that business account. Also, another thing that we are noticing is with the pandemic and the environment that we’ve been in, there’s been some complacency when it comes to business owners. We’re getting out of our normal routine because maybe we were working from home and we weren’t going to the office.

So I’ve seen a lot of situations where people haven’t been consistently paying their business bills out of their business account. What I’m referring to is things like business car payments. If your car loan is part of the business, you need to make sure that you’re paying it out of the business account. Because when it comes time to purchase, if that’s a liability that we need or want to exclude, we’re going to have to have the paper trail. So again, just some quick tips as we currently move out of this pandemic, we are here to help you. Hope you have a great weekend. And if you have any personal questions or concerns, don’t hesitate to reach out. We’ll see you next week.



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