Tagged : #mortgage qualifying
Found 1 blog entry tagged as "#mortgage qualifying".
The reason it seems like it is so hard to get a mortgage approved when you are self-employed is actually twofold. First, the document-gathering-discovery-phase is especially rigorous and second, the evidence requirements have so many more moving parts and potential landmines.
Just what is the liquidity test?
The liquidity test measures the ratio of liquid and near-liquid assets to current liabilities. There is no liquidity test for all regular W2 income folks.
Self-employed folks documentation begins with 2 years of tax returns; personal and business, all pages, all schedules, all everything. Add in the year-to-date Profit & Loss Statement, current Balance Sheet, a letter from an accountant proclaiming that the business has been a going